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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Calculation of Stamp Duty Land Tax (SDLT): lease premium: introduction

SDLT on the premium paid for a lease of residential property see SDLTM00365 is charged at a fixed percentage rate as 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.

Residential property is defined for SDLT purposes at SDLTM20070.

Where the effective date of the transaction is before 12 March 2008 the rule at SDLTM13012 applies to a residential lease where the relevant rental figure (if any) exceeds £600. In this case the 0% rate does not apply to the premium element of the consideration, so all the consideration consisting of premium is chargeable at a rate of 1% or higher.