Simply put, stamp duty rates for rents are not a 6% flat. Contrary to much speculation, you are not obliged to pay a 6% stamp duty if the tenor or your lease does not exceed 21 years. If there has been no explicit agreement in the lease agreement between the exporting parties, it is up to the taker to pay the stamp duty in force. Once tom is awarded the lease, Tom assumes all the obligations of the lease, for example to pay the rent to the lessor. A fixed-rent rental agreement is a rent for which a fixed rent is agreed in advance for the entire rental period. Stamp duty on fixed rent depends on rent tax rates. Stamp duty and instrument registration have always been a complex subject and have been discussed. Several questions are usually asked by people such as: the handing over of a lease is not the same as the award of a lease. Once you have given your lease to the owner, it goes out. Tom agrees to pay Mary`s market value, which is 20,000 euros, to take over the lease. In the event of an increase in rent or an extension of the term of the lease, stamp duty must be paid on the document based on the increase in rent or the rent of the extended tenancy period.
The question now is what is the correct stamp duty to pay for leases or leases. The enabling law contains the mechanism/formula for calculating applicable percentages. We tried to simplify the same thing with a rental value of N1,000, 000.00 (for our friends, with regard to the Transfer of Ownership Act, 1882 and the Registration Act of 1908, the rental of land from one year to another or for a period of more than twelve months or the booking of an annual rent requires mandatory registration with the office of the sub-chancellor of insurance who are responsible for the location of the property for rent. For the purposes of the Registration Act 1908, an instrument requiring mandatory registration should be registered within four months of the date of its implementation. The Clerk may, at his sole discretion, grant an additional four-month extension by introducing a penalty of up to ten times the registration fee, provided that the instrument is not presented within the first four months of its execution for real or unavoidable reasons. In the wake of recent changes to stamp duty rules (“LTDS”), it is a good idea to remind ourselves of some of the fundamental principles of the tax. In this blog, we look at SDLT rules regarding leases and fictitious leases. In this article, we have attempted to address some important aspects of stamp duty payment and the registration of leases and the associated risks. Stamp duty must be paid on the consideration or market value of the rental interest transferred, depending on the higher amount, at the BSD rates. However, in the event of a decrease in rent or a reduction in the duration of the tenancy, the document is not subject to a stamp duty.