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HMRC internal manual

Stamp Duty Land Tax Manual

Calculation of stamp duty land tax: Rent: Term includes a part year: Example 2

A lease of non-residential property is granted on 1 July 2005 commencing on that date andending on 31 October 2012 at a rent of £75,000 per annum. The term of the lease istherefore 7 years and 123 days.

As there is no change in the rent payable over the term of the lease, the actual rentpayable is used for each year of the calculation, that is, £75,000 for each of the first7 years and £25,273 (£75,000 x 123/365) for year 8. If the net present value (NPV)calculator is used, enter £75,000 for each of the first 5 years and £75,000 for thehighest rent. The NPV calculator will automatically calculate the part year proportion.

The NPV is £477,783 and tax of £3,277 is payable.

For examples of where the term expressed in the lease is from a date prior to the date ofgrant, refer to SDLTM17110.