Stamp duty land tax (SDLT) came into force on December 1 2003. Many leases granted on or after that date that work on a five-year cycle will shortly have their first rent review. If a tenant under such a lease suffers a substantial rent increase on review, the increase is now subject to an SDLT charge as a result of the introduction of new provisions relating to abnormal rent increases.
The regime for UK real estate investment trusts (REITs) has been operational since January 2007 and 18 listed UK property companies, including many of the largest companies in the industry, have converted to or listed with UK REIT status. This update considers the conditions and operation of the regime.