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HMRC internal manual

Stamp Duty Land Tax Manual

Calculation of stamp duty land tax: Rent: Rent thresholds: Example 5

A lease on a shop is granted for consideration consisting only of rent. The net present value (NPV) of the rent payable is £135,350.

As part of the same deal, the tenant also enters into a lease with the landlord to rent a storage facility for the business. The NPV of the rent payable under this lease is £15,650.

Both leases are wholly non-residential.

These leases are linked transactions as they are between the same landlord and tenant and are part of a single scheme, arrangement or series of transactions.

The relevant rental values are therefore aggregated for the purposes of applying the stamp duty land tax (SDLT) thresholds: £135,350 + £15,650 = £151,000.

As this exceeds the non-residential threshold of £150,000 the 1% rate of tax applies to the excess over £150,000, i.e.:

151,000 - 150,000 = £1,000

x 1% = £10.00 SDLT due.

The SDLT is allocated to each lease pro rata to the NPV of the leases, i.e.:

£135,350/£151,000 x £10 = £9

£15,560/£151,000 x £10 = £1

In each case the SDLT is rounded down to the nearest £.