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HMRC internal manual

Stamp Duty Land Tax Manual

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 which is not residential at FA03/S116.
  • Property comprising both residential and non residential elements (mixed use) 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.