Why do I pay stamp duty land tax on a rented property?
Philip W does not understand the distinction between “leasehold” and “renting”. There isn’t one – the everyday meanings of these terms are two extremes of the same thing. For a new lease SDLT can be due, even where there is no “purchase” price, only regular rent to be paid. The calculation is based on the Net Present Value (NPV) of the total rent due over the length of the term. But, as with normal purchases, if the NPV is less than £125,000 there is no SDLT to pay. In practice virtually all residential leases and some business will be way below this value, so SDLT is not a concern. If an existing lease is sold (assigned) SDLT will be due in exactly the same way as if a freehold property was sold. IE SDLT will be charged based on the price paid. This is also the case for a new lease granted in return for a “premium” (ie an upfront fee instead of rent), or leases that are part premium part rent. Even if SDLT is not a practical concern, your landlord (or his solicitor) has taken a belt a
