Assessment
Duty on Leases was abolished on lease instruments first executed on or after 1 January 2008. The abolition of duty on leases does not affect any obligation to pay duty in respect of a lease instrument and a variation of a lease instrument executed before 1 January 2008.
If any lease first executed before 1 January 2008 has any unascertainable cost components for which there is an estimate date on or after 1 January 2008, a final estimate of the cost of the lease will be made on the first such date on or after 1 January 2008. The lease instrument will be chargeable with duty as if that final estimate were the full cost of the lease, and no further estimates of the cost of the lease will be made.
When assessing it is necessary to:
determine the total cost of the lease, over its full term, as far as the cost is known, or can be estimated,
calculate the duty based on the total cost, and
pay the duty within three months of the date of first execution of the lease.
The new rates will be used to calculate the total cost for the remainder of the term and a new assessment will issue.
Any additional duty payable as a result of the reassessment must be paid within three months of the date of issue of the Notice of Assessment.
