Calculation of stamp duty land tax: Rent: Variable or uncertain rent: Example 4
A lease for a term of four years is granted on 1 April 2004, with an initial rent of £100,000 per annum which increases by 4% per year.
The net present value (NPV) of this lease is calculated on the basis of the rent increases for each year as they are:
* known at the date of grant; * within the first five years of the term of the lease; and * not calculated in line with RPI.
The figures of rent for the NPV calculation are therefore:
The calculation will not require review because the known rent increases are included in the original NPV calculation and are not estimated or contingent.