Chargeable consideration for a lease or other chargeable
transaction which wholly or partly consists of rent is chargeable
to stamp duty land tax (SDLT) on the ‘relevant rental
value’.
Whether consideration constitutes rent is a question of fact.
Consideration may be treated as rent for SDLT purposes despite
being described otherwise, for example as a licence fee in an
agreement for lease. Conversely, a service charge may be reserved
as rent in the lease but not treated as such for SDLT purposes.
‘Rent’ does not include consideration payable
before a new lease is granted). In some circumstances this may be
taxed as a premium.
A nominal rent is
not chargeable consideration for SDLT purposes if
it:
Refer to:
SDLTM10045 and
SDLTM10040 for details of other
chargeable transactions.
SDLTM13075 for definition of relevant
rental value.
SDLTM11015 for treatment of service
charges etc.
SDLTM17110 and FA03/SCH5/PARA1A re:
rent payable before lease granted.
SDLTM13075 for definition of NPV.
