SDLTM13010 - Calculation of Stamp Duty Land Tax (SDLT): lease premium: introduction

SDLT on the premium paid for a lease, whether of residential or non residential property see (SDLT00360 and SDLTM00365) is charged at the rate determined under FA03/S55.

The amount of any rental payments is not taken into account in determining the amount of tax payable on the premium and will be chargable in their own right.

• Residential property is defined for SDLT purposes at FA03/S116.
• Non residential property is defined for SDLT purposes as any property which is not residential at FA03/S116.
• Property comprising both residential and non residential elements (mixed) is treated as non residential for this purpose.

Note that in certain circumstances:

• ‘rent’ payable in respect of the period before the date on which the lease is granted may be taxable as a premium. Refer to SDLTM17110.
• rent deposits may be treated asa premium for the grant of the lease. Refer to SDLTM11055.