Abnormal rent increase calculator - guidance notes

These notes give more detail about the information you need to enter into the abnormal rent increase calculator.

The calculator applies to leases that started on or after 1 December 2003. You can use it to tell you whether a rent increase that starts after the fifth year of a lease is considered abnormal. If it is, the calculator will work out the amount of any SDLT payable.

Type of lease at start date

You should choose the type of lease that applied when the lease originally started - even if it has changed since then.

1. Residential - land or property used wholly for residential purposes including facilities such as garden, swimming pool, greenhouse etc
2. Non-residential - premises not used for any residential purpose, eg factory, workshop, retail premises
3. Mixed use - the premises is used for both residential and non-residential purposes, eg pub or shop with living accommodation

Date the lease was initially granted

This is the effective date notified to HM Revenue and Customs (HMRC) on the SDLT return for the original lease.

Date the lease is due to end

This is the date the term of the lease is due to end, as entered on the SDLT return notifying HMRC of the original lease.

Net present value (NPV) calculated when the lease was originally granted

This is the net present value entered in box 23 of the SDLT return that notified HMRC of the original lease.

SDLT paid on the grant of the lease

This is the total amount of SDLT paid - the sum of the amounts entered at boxes 24 and 25 on the SDLT return for the original lease.

Date the rent increase becomes payable

This date must be before the date the lease is due to end.

New annual rent payable

This is the new rent amount which includes the rent increase.

The calculator has been constructed in accordance with the principles set out at SDLTM13250

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