On completion, Stamp Duty Land Tax is payable on leases longer than seven years. True or False?

On completion, Stamp Duty Land Tax is payable on leases longer than seven years. True or False?

• A. True
• B. False
• C. Only if there is a mortgage
• D. Only for leases over 100 years

Answer: (A)

The key idea is how SDLT timing depends on the length of the lease. For leases that run longer than seven years, the transaction is treated as a long lease and the SDLT is due at the completion of the lease. The amount is calculated based on the lease’s rent (and any premium) under the long-lease rates. Shorter leases are treated differently, with the tax point typically occurring at grant. So the statement is true: on completion, SDLT is payable on leases longer than seven years.

The key idea is how SDLT timing depends on the length of the lease. For leases that run longer than seven years, the transaction is treated as a long lease and the SDLT is due at the completion of the lease. The amount is calculated based on the lease’s rent (and any premium) under the long-lease rates. Shorter leases are treated differently, with the tax point typically occurring at grant. So the statement is true: on completion, SDLT is payable on leases longer than seven years.