Although the 2009 Budget was fairly unexciting from a Landlord and Tenant point of view the Chancellor did make one very important, but quiet, change.
This was to remove a tax efficiency in premium leases which was used by a number of companies. Previously, the lease premium was not treated as part of the employees renumeration package and so the National Insurance and tax liability of both employer and employee was reduced. This loophole has been removed and the premium paid will now be treated as if it were rent for the purposes of taxation and NI contributons in respect of all premium leases of 10 years or less.
This is not retroactive but will apply to all new or extended leases from yesterday, 22 April 2009.
More information is available on the HMRC website.
Undoubtedly this will markedly reduce the number of premium leases in the market.