K5. Assignment of a lease

- Payment by assignor to person receiving assignment is consideration for a supply and not exempt

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General rule

- In this scenario the supply is from the person receiving the assignment to the person making the assignment and is not within the land exemption (Cantor Fitzgerald).

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Alternative options

- The existing tenant could retain the lease and sub-let to the proposed assignee at a lower rent than it pays. The sub-lease can be exempt (Cantor, §31).

- Pay the landlord to accept early termination of the lease, which would be exempt (Cantor, §31).

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Legislation: 

Cases:

Cantor Fitzgerald C-108/99; 

HMRC manuals: 

Commentary: 

See also:

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