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SDLTM13100 | Calculation of stamp duty land tax: Rent: Rate thresholds

From HM Revenue & Customs · Stamp Duty Land Tax Manual

Once the net present value (NPV) of the rental payments has been calculated (refer to SDLTM13075), the stamp duty land tax (SDLT) on the rent may be calculated. To calculate SDLT on a single lease:

  • the relevant land is the land that is the subject of the lease

  • the relevant rental value is the NPV of the rent payable over the term of the lease

If the lease in question is one of a number of linked transactions (refer to SDLTM17035) where the consideration consists of or includes rent, then:

  • the relevant land is any land that is the subject of any of those leases and

  • the relevant rental value is the total of the NPV of the rents payable over the terms of those leases

The rate of SDLT that applies to the NPV depends on whether the relevant land that is subject to the lease is wholly residential (refer to FA03/SCH5/PARA2).

The SDLT rates and thresholds for leasehold transactions can be found on the Stamp Duty Land Tax Overview page on GOV.UK. Example calculations can be found at SDLTM13105.