One point I picked up on in the papers at the weekend was the proposed move by retail tenants to "turnover" rents so that the rent paid will be linked in some way to the money coming in via the tills. This gives lots of issues for my Commercial Property lawyer colleagues to worry about, not least the calculation of the turnover - for starters, how is "Click and Collect" recorded?
I started thinking about tax and in particular stamp duties - Stamp Duty Land Tax ("SDLT") payable in England and Land Transaction Tax ("LTT") payable in Wales. Traditionally, stamp duties have been paid by the tenant at the start of the lease and then could be safely ignored in most cases. Turnover leases will require a recalculation of stamp duties each time the rent is adjusted with potentially a need for a return to HMRC or WRA and a payment of additional stamp duties (or possibly a refund claim). Hopefully just an annual event. However, the time and cost of dealing with the issue must be taken into account. Failure to make a return and/or pay the tax will create a penalty and/or interest charges.
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