A tax payable on transactions involving land. Available on both freehold and leasehold transactions. On freehold transactions it’s payable by reference to the actual amount you pay. Whereas with leasehold transactions, if you’re paying a premium for the lease and you’re also paying rent then it will be payable on both. SDLT is calculated by reference to a formula which is quite complicated to use. In this case, will help people arrive at what’s called the net present value and that’s the value upon which the duty is chargeable.
