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HMRC internal manual

Stamp Duty Land Tax Manual

Calculation of stamp duty land tax: Rent

Stamp duty land tax is chargeable on rental payments at a flat rate of 1% on the amount by which the net present value (NPV) of the rent exceeds the relevant (residential or non-residential) threshold.

In calculating the NPV, the VAT-inclusive rent must be used if the landlord has elected to waive exemption from VAT.

SDLT on rental payments is payable by the tenant.

If there is a rent free period, the rent for that period is treated as zero for SDLT purposes, regardless of whether the rent free period is dealt with in the lease or agreed separately.

For further details of NPV see SDLTM18455

For current thresholds see SDLTM18470