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HMRC internal manual

Stamp Duty Land Tax Manual

Calculation of stamp duty land tax: Lease premium: Relevant rental figure

This page relates only to the calculation of the relevant rental figure for the purposes of calculating stamp duty land tax (SDLT) under FA03/SCH5/PARA9(2A) and FA03/SCH5/PARA9(3) on a premium paid for a lease of non-residential property (or a lease of residential property where the effective date of the transaction is before 12 March 2008).

Property comprising both residential and non-residential elements is treated as non-residential for this purpose.

Where consideration for a lease of non-residential property is in the form of both premium and rental payments, these are considered together for the purposes of SDLT so that the tax-freethreshold is not available twice for the same transaction (refer to SDLTM13010).

The relevant rental figure is determined by the rent each year. The amounts used for calculating the relevant rental figure may be different from those used for determining the netpresent value of the rent – refer to SDLTM13075.

If the annual rent is the same for each year of the lease, this is the relevant rental figure. If the rent is variable, you need to determine what the ascertainable rent is each year. Rent is ascertainable if you know you are going to have to pay at least this amount for the year. The relevant rental figure is then the highest ascertainable annual rent during the term of the lease.