Further SDLT changes - the £40,000 rule

It seems that the Government has responded to requests from property lawyers, and has adjusted the Revenue's new £40,000 rule (i.e. the rule that exempts certain minor transactions from SDLT notification requirements) so that a larger number of leasehold transactions will now fall into the exemption. An amendment to the Finance Bill tabled last Thursday will exempt from notification any lease assignment or surrender where the consideration is less than £40,000 - regardless of the level of annual rent at the time. A detailed explanation of this practical effect of this change appears in the June issue of the CPI Update - click on CPI Update - June 2008.