Could someone please decipher this for me?

glicky

The following paragraph is from a Lease to a property. I'm a bit thick when it comes to legal documents. Could someone please explain what this means in lame terms.

"IT IS HEREBY CERTIFIED that the transaction hereby effected does not form part of a larger transaction or of a series of transactions in respect of which the amount or value or the aggregate amount or value of the consideration other than rent exceeds the sum of Four thousand five hundred pounds"

Your help would be appreciated.

Thank you.

BertieUK

Probably there is quite a simple answer to this statement. Sounds like a reference that the Chancellor would make in his Buget Speech and expect us to understand it.

Regards
Bob

Yorkie1

How old is the lease document with that clause in?

I suspect it relates to stamp duty, to ensure that HMRC (or similar authority in place at the time) didn't seek to link this lease to any other similar transactions, thus adding to the overall value of the linked transactions and the rate at which stamp duty was paid.

G_M

Yorkie is right.

Relates to Stamp Duty (SDLT nowadays).

Basically stamp Duty was payable on transactions (purchases) over a given amount (in this case at the date in question £4,500 - I assume the lease is dated a few years ago!!).

But if the transaction was linked to a 2nd transaction (eg you buy a house, and a garden, seperately), then they are treated as a single transaction for Stamp Duty purposes.

(Otherwise people would sell their garden, then sell their house, thereby keeping both contracts below the threshold [£4,500] and avoid paying tax)

So this clause is confirming the sale is not part of another sale, or a series of (related) sales.

glicky

Thanks guys - it cleared it up for me.

Really appreciate it!