SDLT for leasehold purchases

How to calculate the net present value (NPV) of the rent

You can use the HM Revenue & Customs (HMRC) online Stamp Duty Land Tax (SDLT) lease transactions calculator below to work out the NPV and the amount of any SDLT due on it. Select 'residential' or 'non-residential' as appropriate for the property type.

If the term of the lease is longer than five years, the calculator will work out the amount of SDLT due by taking the highest rent payable in the first five years and then applying that amount to each remaining year of the term.

If VAT is payable on the rent

You should include any VAT payable on the rent in the NPV calculation using the following rates:

  • 1 January 2010 to 3 January 2011 inclusive - 17.5 per cent
  • 4 January 2011 onwards - 20 per cent

Use the SDLT lease transactions calculator on the HMRC website.

See the other pages in this guide for what you'll need to do to work out the NPV if any of the following apply:

  • all or part of the rent is unknown
  • the length of the lease is unknown or indefinite
  • the rent doubles or more than doubles after five years
  • the lease is surrendered and a new lease is granted on the same property
Developed with:

HM Revenue & Customs