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Home › Forums › Patrick Cannon › Calculating SDLT with Two Linked Transactions involving Interests
How do you calculate SDLT when there are linked transactions involving both freehold and leasehold interests?
For example consider the transfer of non-residential properties:
Freehold value – ?100,000
Leasehold value (NBV of rent) – ?80,000
The combined value is ?180,000. Using the rules for freehold would give SDLT at 1% on the whole ?180,000, but the leasehold rules only charge 1% on the excess over ?150,000. How do they interact?
No account is taken of the rent when calculating the consideration for the freehold – see para 9(5) Schedule 5 FA 2003. However, the 0% band is not available for the freehold consideration – see para 9(2A).