Tacit relocation Definition

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GLOSSARY

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What does Tacit relocation mean?

In relation to leases (and some other contracts eg Partnerships), implied reletting (or continuance) where no notice of termination is given; the renewal is for one year if the lease is for a year or more or for the period of the lease if the lease is for less than a year. Continuance of other contracts is usually from year to year

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Scotland: Land and buildings transaction tax (LBTT) on Leases—table

Scotland: Land and buildings transaction tax (LBTT) on Leases—table This Table considers how land and buildings transaction tax (LBTT) applies to common lease transactions. For more detailed commentary on LBTT generally, see Practice Notes: • Scotland: Land and buildings transaction tax (LBTT)—the basics • Scotland: Land and buildings transaction tax (LBTT)—chargeable consideration and rates of LBTT • Scotland: Land and buildings transaction tax (LBTT)—particular transactions and taxpayers • Scotland: Land and buildings transaction tax (LBTT)—administration and compliance LBTT is payable on leases of Scottish property in broadly similar fashion to stamp duty land tax (SDLT) on leases of English property with one significant exception—leases of residential property are exempt from LBTT unless: • the transaction involves six or more residential properties in which case, it will be treated as if it were non-residential property and subject to LBTT accordingly • the transaction involves a mix of residential and non-residential property in which case, it will also be treated as non-residential property, and • the lease is a long lease which...

Serving notice to quit—Scotland—checklist

Serving notice to quit—Scotland—checklist This Checklist explains how notices to quit to stop tacit relocation operating in commercial leases in Scotland should be served, It considers who/which party may serve a notice to quit, when notice to quit must be given and the method of service of a notice to quit. It does not deal with notices to quit residential or agricultural property nor does it deal with specific protection for shop tenants under the Tenancy of Shops (Scotland) Act 1949 (see Practice Note: Protection for shop tenants). In Scotland, the doctrine of tacit relocation means that commercial leases will not terminate at the stated contractual expiry date, but rather be extended, unless either party serves a notice to quit in time to terminate at the contractual expiry date and this is followed up by acting on the notice or the tenant confirming in a separate document that it will vacate on the specified termination date. It is important that the notice to quit is both correctly drafted and correctly...

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Assured and short assured tenancies—Scotland

Assured and short assured tenancies—Scotland This practice note considers assured and short assured tenancies in Scotland created between 2 January 1989 until 30 November 2017. What is an assured tenancy? The assured tenancy regime commenced in Scotland on 2 January 1989. It is a creature of statute and as such the starting point for matters pertaining to such tenancies is the Housing (Scotland) Act 1988 (H(S)A 1988). It is important to note that no new assured or short assured tenancies have been capable of creation since 1 December 2017. An assured tenancy is a tenancy that satisfies the requirements of H(S)A 1988, s 12, namely: • a house is let as a separate dwelling, and • the tenant, or at least one of the joint tenants, is an individual (not a commercial entity) • the tenant or one of the joint tenants, occupies the property as their only or principal home • the tenancy is not excluded in terms of H(S)A 1988, Sch 4 • the tenancy was not granted...

Bringing a residential tenancy to an end in Scotland

Bringing a residential tenancy to an end in Scotland Private residential tenancies The Private Housing (Tenancies) (Scotland) Act 2016 (PH(T)(S)A 2016) created a private sector residential tenancy called the ‘private residential tenancy’ (PRT), see Practice Note: Private residential tenancies—Scotland. PRTs were introduced on 1 December 2017 and replaced the assured and short assured tenancies regime (see ‘Tenancies created before December 2017’ below). From 1 December 2017, it is no longer possible to enter into a new assured or short assured tenancy. Assured and short assured tenancies in existence prior to 1 December 2017 continue to be governed by the Housing (Scotland) Act 1988 (H(S)A 1988) including the H(S)A 1988 termination provisions. This includes short assured tenancies in existence before 1 December 2017 which renew on a contractual basis (eg for further two monthly periods after the initial term) on or after 1 December 2017. A landlord and tenant can agree to convert their assured or short assured tenancy to a PRT on or after 1 December 2017, see...

Discover our 11 Practice Notes on Tacit relocation

Tenant Notice to Quit to stop tacit relocation operating—Scotland

Tenant Notice to Quit to stop tacit relocation operating—Scotland NOTICE FROM TENANT TO STOP TACIT RELOCATION OPERATING Our Ref: [insert reference] Your Ref: [insert reference] Date: [insert date] To: [Insert name of addressee and address] Dear [insert organisation or addressee name], Premises: [insert address of premises] more particularly defined in the Lease Lease: The lease made between [Insert name of landlord] and [insert name(s) of tenant(s)] dated [date signed by landlord] and [date signed by tenant(s)] and registered in the Books of Council and Session on [insert date][ and also recorded in the Division of the General Register of Sasines for the County of [insert name of county] on [insert date]] [and the tenant's right to which is registered in the Land Register of Scotland under Title Number [insert title number]] [ which expires on [insert date of expiry of lease] OR which expired on [insert date of expiry of lease] and which has

Report on title—exception lease report—Scotland

Report on title—exception lease report—Scotland EXCEPTION LEASE REPORT Premises: [insert description] Tenant: [insert name] This exception lease report has been prepared in connection with your proposed purchase of [insert name of property]. Its purpose is to highlight the key letting information and any material issues or areas of concern. It is not intended to be used as a management tool. We have reported to you in full on the terms of the lease of [insert premises] which is currently vested in [insert name of current tenant] (the ‘Standard Lease’). Save as disclosed in this report, the terms of this lease are, in all material respects, the same as the terms of the Standard Lease. Executive summary of material issues We draw your attention to the following: • [Insert material issue/area of concern] • [Insert material issue/area of concern] 1 Particulars 1.1 Date [Insert date of lease][ as varied by [insert document name]. The deed varied the lease by [insert details of provisions varied]]. 1.2 Back letters [None disclosed....

Dive into our 4 Precedents related to Tacit relocation

A stamp duty (pre-SDLT) (SD) business lease of land in Scotland has expired and the tenant has been holding over since. The understanding is that no charge to SD, SDLT or LBTT arises in the period of holding over. The parties will enter into minute of variation to extend the term of the lease (with the term running from June 2022 to June 2027) and to reduce the rent. Will this variation bring the SD lease within the LBTT regime? Will the chargeable consideration for LBTT purposes be the rent contractually payable under the LBTT lease from June 2022 but not including any rent which was payable in respect of the prior period?

A stamp duty (pre-SDLT) (SD) business lease of land in Scotland has expired and the tenant has been holding over since. The understanding is that no charge to SD, SDLT or LBTT arises in the period of holding over. The parties will enter into minute of variation to extend the term of the lease (with the term running from June 2022 to June 2027) and to reduce the rent. Will this variation bring the SD lease within the LBTT regime? Will the chargeable consideration for LBTT purposes be the rent contractually payable under the LBTT lease from June 2022 but not including any rent which was payable in respect of the prior period? This Q&A assumes that the date of execution of the Minute of Variation will fall after the commencement date of the extended lease (ie the term commencement date is retrospective). Although not accepted by all members of the legal profession in Scotland, Revenue Scotland are firmly of the view that a variation of the type

Where a non-residential lease over land in Scotland (in respect of which stamp duty land tax (SDLT) was paid and a return filed) is varied in 2017 to extend the term (and reduce the rent), would the variation bring the lease within the Land and Buildings Transaction Tax (LBTT) regime even if the deemed new lease which arises as a result of the variation is not notifiable (because the term of the lease is only two years) and no LBTT is due (because rent over the extension is below the LBTT nil rate band)? The deemed new lease extends by tacit relocation. Is it correct that an LBTT return will be due where the effect of the tacit relocation is that it makes the deemed new lease, notifiable where it was not previously?

Where a non-residential lease over land in Scotland (in respect of which stamp duty land tax (SDLT) was paid and a return filed) is varied in 2017 to extend the term (and reduce the rent), would the variation bring the lease within the Land and Buildings Transaction Tax (LBTT) regime even if the deemed new lease which arises as a result of the variation is not notifiable (because the term of the lease is only two years) and no LBTT is due (because rent over the extension is below the LBTT nil rate band)? The deemed new lease extends by tacit relocation. Is it correct that an LBTT return will be due where the effect of the tacit relocation is that it makes the deemed new lease, notifiable where it was not previously? The Land and Buildings Transaction Tax (Transitional Provisions) (Scotland) Order 2014, SSI 2014/377, reg 13 applies to a lease granted prior to the commencement date of Land and Buildings Transaction Tax (LBTT) (1 April 2015) where there...

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