Rates read 22 October 2026 from HM Revenue & Customs
Leasehold Stamp Duty and the Rent (NPV)
Buying a new lease has two possible SDLT charges: the usual rates on the premium (the price of the lease), and 1% on the net present value of the rent above £125,000.
Work it out
This is the rent-only charge. If you also pay a premium for the lease, that premium is taxed separately on the main SDLT calculator.
The bands
| Portion of the price | Rate |
|---|---|
| £0 – £125,000 | 0% |
| Above £125,000 | 1% |
What the NPV is
The net present value is the total rent over the life of the lease, discounted to today. GOV.UK: if the NPV is more than the SDLT threshold (currently £125,000), you pay 1% on the portion over £125,000. This applies to new leases, not to existing leases you take over.
Premium and rent are separate
The premium is taxed on the residential or non-residential scale like a purchase price. The rent NPV is taxed separately at 1%. A lease can owe both.
Scotland and Wales differ
Scotland charges LBTT on lease rent using its own net present value bands, and Wales charges LTT on the NPV with bands of 0%, 1% and 2%. This calculator covers the England and Northern Ireland rule only.
Source: HM Revenue & Customs — Stamp Duty Land Tax: residential property rates (leasehold section), read 22 October 2026. England and Northern Ireland. Enter the net present value of the rent, not the annual rent.