Introduction: Scope of stamp duty land tax on leases
Leases predating SDLT may instead be chargeable to stamp duty.
SDLT is chargeable on both the premium and rental elements of consideration for the grant of a new lease, with the respective charges calculated separately then added together and entered onto the land transaction return as a global figure.
SDLTM11040 for definition of premium
SDLTM11010 for definition of rent
SDLTM13010 for the calculation of SDLT on lease premiums
SDLTM11015 to SDLTM11035 for the calculation of SDLT on rents.
SDLTM10045 for details of transactions treated as the grant of a new lease.
SDLTM07600 to SDLTM07750 (and FA03/Part 4) re: effective date.
SDLTM10025 for treatment of pre-implementation leases.
SDLTM10022 for Timeshares
SDLTM10023 for treatment of Mobile Homes, Caravans and Houseboats
Please also note that FA07 inserted new sections to FA03 which would apply where -
- one person (‘V’) disposes of a chargeable interest and another person (‘P’) acquires either the chargeable interest or a chargeable interest deriving from it;
- a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (these are referred to as ‘scheme transactions’ );
- the sum of the amounts of SDLT payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V’s chargeable interest by P.