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HMRC internal manual

Stamp Duty Land Tax Manual

Calculation of stamp duty land tax: Rent: Rent thresholds

Once the net present value (NPV) of rental payments has been calculated (see SDLTM18455), the stamp duty land tax (SDLT) may be calculated. To calculate SDLT on a single lease:

* the relevant land is the land that is the subject of the lease
* the relevant rental value is the NPV of the rent payable over the term of the lease.

If the lease in question is one of a number of linked transactions (see SDLTM19635) where the consideration consists of or includes rent, then:

* the relevant land is any land that is the subject of any of those leases and
* the relevant rental value is the total of the NPV of the rents payable over the terms of those leases.

The following rates apply depending on whether the relevant land is wholly residential (see FA03/SCH5/PARA2):

Residential leases:

Relevant rental value (from 22 March 2008) Rate of tax to apply
   
Up to £175,000(from 3 September 2008 until 31 December 2009) and then £125,000 (from 22 March 2008 to 2 September 2008 and then again from January 2010). 0%
More than £175,000((from 3 September 2008 until 31 December 2009) and then more than £125,000 (from 22 March 2008 to 2 September 2008 and then again from January 2010). 1% on excess over £125,000

Non-residential or mixed type leases:

Relevant rental value (from 1 December 2003) Rate of tax to apply
   
Up to £150,000 0%
Over £150,000 1% on excess over £150,000

Examples can be found at SDLTM18475