Stamp Duty on a Lease Extension for a Buy to Let Property?

swlondon1961

Do I have to pay stamp duty on a buy to let property that I have owned for 30 years when I'm extending the lease? The property is rented out. Is there a calculator for this? I understood that stamp duty is only applicable if the extension price is over £125,000. My extension price is nowhere near that! Thanks.

eddddy

SDLT is payable on Lease Extensions.

As it's not your primary residence the starting point for SDLT would be £40k.

booksurr

use the HMRC calculator
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

whether you know what figures to put where in respect of lease premium is another matter, but one thing is certain, it will be payable at the higher rate with £40k start threshold !

swlondon1961

Thanks for your responses. Do you have a link to the £40k starting point? I can't see it on gov.uk ! At first my solicitor calculated it from £40k and now says he was in error and is charging the duty for the entire cost. Thanks.

booksurr

swlondon1961 wrote: »

Thanks for your responses. Do you have a link to the £40k starting point? I can't see it on gov.uk ! At first my solicitor calculated it from £40k and now says he was in error and is charging the duty for the entire cost. Thanks.

the 40k start point means that the lease extension value is worth more than 40K

if it is then, as your solicitor says, SDLT will be payable on the whole amount. You do not get the first 40k tax free where the additional rate rule applies.

if it is less than 40k then no SDLT will be due at all.

bear in mind a lease extension has 2 elements: the premium and the net present value of the rent component. That is the final figure the calculator will give you, and it is that figure which is referenced against the 40k threshold