SDLT and NPV

tony3619

Hello, 

So I purchased a property in 2016 and at the time my solicitor worked out no stamp duty was due as It was a shared ownership plus I had first to.e buyers relief. 

I'm trying to get a better understanding of these kinds of topics etc. 

I understand as my share was £105000 and I opted to pay in stages the SDLT on my share was £0. 

What I dont seem to be able to work out is how to take my NPV which started at £4400 per annum back in 2016 (125 year lease) and work out how no sdlt was due on this part? Does first time buyer relief apply to NPV also?

SDLT_Geek

tony3619 said:

Hello, 

So I purchased a property in 2016 and at the time my solicitor worked out no stamp duty was due as It was a shared ownership plus I had first to.e buyers relief. 

I'm trying to get a better understanding of these kinds of topics etc. 

I understand as my share was £105000 and I opted to pay in stages the SDLT on my share was £0. 

What I dont seem to be able to work out is how to take my NPV which started at £4400 per annum back in 2016 (125 year lease) and work out how no sdlt was due on this part? Does first time buyer relief apply to NPV also?

I will assume the property was in England so that the relevant stamp duty was stamp duty land tax (you do mention SDLT).

In 2016 there was no first time buyers' relief; that came in with effect from 23 November 2017.  But it seems that does not matter, because if you put the rent figures and the length of the lease into the SDLT calculator here https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro it gives the net present value of the rents as £124,008, which is below the threshold of £125,000.  So, without the election for market value, no SDLT was due on taking the lease.

Just to check: you bought from a social landlord, so the form of the transaction was that you took the grant of a new lease (as opposed to taking a transfer / assignment of a pre-existing lease)?