The client is non-resident (he lives in Ireland). He owns 100% of a UK company(‘UK Co.’) which in turn owns various UK properties which are all mortgaged. The client has been advised by his Irish lawyer to exchange his shares in UK Co. for shares in a new Luxembourg company (‘Lux Co.’).
A Limited Liability Partnership owns a portfolio of UK properties which are let. Two unconnected individuals are the members of the LLP. A company (‘Co’) connected with one of the individuals has lent the LLP £500,000 at some time in the past.
A husband (H) and wife (W) were in partnership, through a limited liability partnership (LLP), with a company (Co) which H and W owned in equal shares. LLP was a property investment vehicle. The properties held by LLP were transferred into LLP after October 2003 and SDLT was paid.
Q: Is it preferable for SDLT purposes to have a 5 year lease with option to renew for further 5 years with first year of follow-on lease rent-free or a 10 year lease with a break clause at the end of year 5 which is exercised?