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HMRC internal manual

Stamp Duty Land Tax Manual

Chargeable Consideration: Rent

A lease or other chargeable transaction where the chargeable consideration wholly or partly consists of rent is chargeable to SDLT on the ‘relevant rental value’.

As rent is not defined for SDLT purposes it will take its ordinary meaning - i.e. a periodic payment for the use of land/property.

Whether consideration constitutes rent is a question of fact. Consideration may be treated as rent for SDLT purposes despite being described otherwise, for example as a licence fee in an agreement for lease. Conversely, a service charge may be reserved as rent in the lease 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 normally 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.

Refer to:

SDLTM10045 and SDLTM10040 for details of other chargeable transactions.

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.