Stamp Duty Land Tax Explained

Stamp duty land tax is a form of taxation raised through dealing with property. The common belief is that the tax is payable on the purchase of properties, however commercial leases also attract the tax.Stamp Duty Land Tax Payable on Commercial Leases

Stamp duty land tax is generally calculated as a percentage of the purchase price with the percentage changing once the price exceeds certain thresholds. The calculation is slightly different with leases as the calculation is based upon the premium payable (if any) and upon the rent each year of the term.

The amount of stamp duty land tax payable can be calculated on the HM Revenue and Customs website by clicking here.

A Stamp Duty Land Tax Return Should Be Filed

In any property transaction a stamp duty land tax return should be filed along with the revenue certifying that no tax is payable, or alternatively by certifying the amount payable together with the appropriate fee.

Legal Advice Should Be Sought

Particular attention needs to be paid with commercial leases as there is a duty on the tenant to continue to file stamp duty land tax returns throughout the term. Specialist legal advice should be sought to determine when the return should be filed.

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Written by Matthew Smith- Property Solicitor

If you would like more information about stamp duty land tax please call our business property law solicitor on 08000 111 303 or alternatively visit

Categories: Business Property


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