Calculation of stamp duty land tax: Lease premium: Relevant rental figure: Example 3
This example relates to the calculation of the relevant rental figure under FA03/SCH5/PARA9(2A) and FA03/SCH5/PARA9(3) for the purpose of calculating stamp duty land tax (SDLT) on the premium paid for a lease of non-residential property where the effective date is on or after 12 March 2008 (see SDLTM13012).
The amounts used for calculating the relevant rental figure may be different from those usedfor determining the net present value of the rent – refer to SDLTM13075.
A non-residential lease for 999 years is granted on 1 June 2008 for a premium of £400,000 and a ground rent of £750 per year. The ground rent does not change.
The relevant rental figure is the annual rent of £750. As this is below £1,000, the 0% threshold would be available for the purposes of calculating SDLT on the premium element of the consideration. However the premium exceeds the £250,000 threshold so is taxable at 3%.