SolvedSDLTM13210 | Calculation of Stamp Duty Land Tax (SDLT): Rent: Variable or uncertain rent: Example 3
From HM Revenue & Customs · Stamp Duty Land Tax Manual
A lease is granted on 1 January 2018 for ten years at a rent of £100,000 per annum rising to £130,000 per annum on 1 January 2022 and to £140,000 per annum on 1 January 2026.
The rent payable for each of the first five years is:
| Year 1 | £100,000 |
|---|---|
| Year 2 | £100,000 |
| Year 3 | £100,000 |
| Year 4 | £100,000 |
| Year 5 | £130,000 |
Because the rent is variable, the actual rent payable for years 6 - 10 is ignored for the calculation of the net present value (NPV). Instead the highest rent paid in any period of twelve months within the first five years is used. In this example the rent paid for years 6 - 10 in calculating the NPV will be £130,000 p.a. The rent increase in year 9 is ignored for the purposes of the calculation, as it is outside the first five-year period.
There will be no need to submit a revised return at the end of year 5, as there are no estimated or contingent figures contained in the original calculation.