The SDLT rules contain a structural bias in favour of leveraging up leases over reducing leverage. Payment of a reverse premium by a tenant for a lease surrender or other termination, does not occasion a charge to SDLT on the tenant (although there is SDLT on the landlord if it pays for the surrender). However, a tenant is caught by SDLT if it provides consideration to the landlord for a reduction in rent. The same treatment applies where a tenant moves from quarterly to monthly payment of rent. Different rules apply where there is an assignment as part of a business sale.
