Chargeable Consideration: Rent
Chargeable consideration for a lease or other chargeable transaction which wholly orpartly consists of rent is chargeable to stamp duty land tax (SDLT) on the ‘relevantrental value’.
Whether consideration constitutes rent is a question of fact. Consideration may be treatedas rent for SDLT purposes despite being described otherwise, for example as a licence feein an agreement for lease. Conversely, a service charge may be reserved as rent in thelease but not treated as such for SDLT purposes.
‘Rent’ does not include consideration payable before a new lease is granted). Insome circumstances this may be taxed as a premium.
A nominal rent is not chargeable consideration for SDLT purposes if it:
- is expressed as a peppercorn or similar, or
- has a net present value (NPV) of less than £1.
SDLTM13075 for definition of relevant rental value.
SDLTM11015 for treatment of service charges etc.
SDLTM17110 and FA03/SCH5/PARA1A re: rent payable before leasegranted.
SDLTM13075 for definition of NPV.