Lease NPV SDLT Calculator
Calculate stamp duty on commercial leases using the HMRC Net Present Value method with the 3.5% temporal discount rate.
Taking a new lease? You pay stamp duty on the rent too
Lease stamp duty is worked out from the rent over the whole term. A specialist checks the figure before you sign.
Lease Details
Rent NPV
£415,830
SDLT on Rent
£2,658
SDLT on Premium
£0
Total SDLT
£2,658
Rent NPV SDLT Breakdown
| Band | Rate | Tax |
|---|---|---|
| £0 to £150,000 | 0% | £0 |
| £150,000 to £415,830 | 1% | £2,658 |
How NPV Works for SDLT
SDLT on leases is calculated on the Net Present Value of total rent payable over the lease term. HMRC uses a fixed temporal discount rate of 3.5% per annum.
NPV = Σ (annual_rent ÷ 1.035year) for each year 1 to 10
The NPV is then taxed using the lease rent SDLT rates. If a lease premium (upfront payment) is also made, that is taxed separately using the standard commercial SDLT rates.
Year-by-Year NPV Breakdown
| Year | Annual Rent | Discount Factor | Present Value |
|---|---|---|---|
| 1 | £50,000 | 0.9662 | £48,309 |
| 2 | £50,000 | 0.9335 | £46,676 |
| 3 | £50,000 | 0.9019 | £45,097 |
| 4 | £50,000 | 0.8714 | £43,572 |
| 5 | £50,000 | 0.8420 | £42,099 |
| 6 | £50,000 | 0.8135 | £40,675 |
| 7 | £50,000 | 0.7860 | £39,300 |
| 8 | £50,000 | 0.7594 | £37,971 |
| 9 | £50,000 | 0.7337 | £36,687 |
| 10 | £50,000 | 0.7089 | £35,446 |
| Total NPV | £415,830 | ||
SDLT Rate Tables
Rent NPV Rates
| Up to £150,000 | 0% |
| £150,001 to £5,000,000 | 1% |
| Over £5,000,000 | 2% |
Premium Rates (Commercial)
| Up to £150,000 | 0% |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
When This Applies
The NPV calculation applies primarily to commercial leases. Residential tenancies rarely trigger SDLT because the residential rent NPV threshold of £125,000 (1% on the excess) is seldom reached at typical residential rent levels. The £150,000 threshold in the tables above is the non-residential one used by this calculator.
For the full rules on commercial lease SDLT, premiums, extensions and renewals, see our lease transactions guide.
Reviewed by
Julie White
ACAStamp duty specialist since 1999Stamp Duty Land Tax Specialist
ACA and Tax Adviser with a career spanning nearly four decades, specialising in stamp duty planning and advisory work since 1999.