Stamp Duty and Leasehold Property

Pound Coins and Twenty Pound NoteIt is often forgotten that Stamp Duty is payable on the grant of a lease.

This is based on the net present value as calculated by HM Revenue and Customs.  So for a 7 year Lease starting after 1 April 2016, with an annual rent of £50,000 per annum, the net present value will be calculated as being £305,727 and the stamp duty (due at 1% over £150,000) would therefore be £1,557.

Stamp Duty is payable on leases for residential and non-residential property and further information can be found at the Gov.uk pages here.

 

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