Land tax implications for leases granted in December 2003

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Stamp Duty Land Tax was introduced in December 2003 and land tax was based on the first 5 years rent. Consideration must now be given as to whether more tax is payable or if a rebate is due. However, be aware that the Inland Revenue will be looking at any anti-avoidance schemes where the rent was initially artificially low and on a review after 5 years the rent has increased by more than 20% per annum.