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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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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) on premiums, under FA03/SCH5/PARA9 (2A) and (3).

Where consideration for a lease is in the form of both premium and rental payments special provisions apply to mixed use and non-residential property which mean that the nil rate band is not available in respect of the premium if the average annual rent (called the “relevant rental figure”) exceeds £1000 per annum (see SDLTM18410).

The rental figures used for determining net present value and for determining whether the nil rate band is available on the premium may be different- see SDLTM18455.

The relevant rental figure is determined by the rent each year.

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.