The following Corporation Tax guidance note by Tolley in association with Grant Thornton's stamp taxes team provides comprehensive and up to date tax information covering:
SDLT is charged on the grant of a new lease and other transactions treated as such (including lease variations to increase rent).
It is chargeable on any lease premium and on lease rentals payable. For SDLT purposes, ‘premium’ is defined as chargeable consideration other than rent (see FA 2003, Sch 5, para 9) and tax is charged on the premium based on the rates set out in FA 2003, s 55. From 1 April 2016, the residential rates are now overlaid by an additional 3% higher rate for purchases of additional dwellings by individuals (or generally to dwellings purchased by companies) – see the comments below on new FA 2003, Sch 4ZA. In addition, from 17 March 2016, the non-residential rates are now progressive rates of 0% (up to £150,000), 2% (up to £250,000) and 5% (above £250,000). For further information, please refer to the Stamp duty land tax – basic rules guidance note.
SDLT is chargeable on rent payable over the term of the lease at the net present value (NPV). For residential transactions, SDLT is calculated on the NPV of the rent payable at 0% up to £125,000 and 1% above £125,000. For non-residential (or mixed) transactions, from 17 March 2016, a new progressive rates system will apply to the rental consideration (see the table below). SDLT will be charged on the proportion of the rental consideration falling into each band.
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