Stamp duty land tax (SDLT) on the premium paid for a lease of
residential property is charged at a fixed percentage rate as
determined under FA03/S55. Refer to
SDLTM00050 for the table of rates and
thresholds.
The amount of any rental payments is not taken into account
in determining the amount of tax payable on the premium.
Residential property is defined for SDLT purposes at
SDLTM20070.
Where the effective date of the transaction is before 12
March 2008 the rule at
SDLTM13012, below, applies to a
residential lease where the relevant rental figure (if any) exceeds
£600. In this case the 0% rate does not apply to the premium
element of the consideration, so all the consideration consisting
of premium is chargeable at a rate of 1% or higher.
