Stamp Duty and leases

Varying a lease

You can vary the terms of an existing lease. The instrument (written document) varying the existing lease is usually called a Deed of Variation.

A Deed of Variation may vary:

  • the rent payable
  • the period of the lease
  • the area covered by the lease
  • other terms of the lease to reflect the new period or area covered.

When the Deed of Variation only varies the rent payable, Stamp Duty is not chargeable. You do not file a Stamp Duty return.

In the case of other types of variation, Stamp Duty may be chargeable. Stamp Duty is chargeable if the parties intend to:

  • bring the existing lease (old lease) to an end
  • and
  • create a new lease based on the terms contained in the Deed of Variation.

Stamp Duty is chargeable on the terms of the old lease as amended by the Deed of Variation. Bringing an existing lease to an end and creating a new one is usually called a surrender and re-grant.

Stamp Duty is not chargeable on a Deed of Variation if the parties to the lease do not intend to:

  • bring the old lease to an end
  • and
  • create a new lease based on the terms contained in the Deed of Variation.

You do not file a Stamp Duty return.

Next: Transitional Arrangements