A lease of non-residential property is granted on 1 July 2005
commencing on that date and ending on 31 October 2012 at a rent of
£75,000 per annum. The term of the lease is therefore 7 years
and 123 days.
As there is no change in the rent payable over the term of
the lease, the actual rent payable is used for each year of the
calculation, that is, £75,000 for each of the first 7 years
and £25,273 (£75,000 x 123/365) for year 8. If the net
present value (NPV) calculator is used, enter £75,000 for each
of the first 5 years and £75,000 for the highest rent. The NPV
calculator will automatically calculate the part year proportion.
The NPV is £477,783 and tax of £3,277 is payable.
For examples of where the term expressed in the lease is from
a date prior to the date of grant, refer to
SDLTM17110.
