Commercial tenants taking a lease of premises should not forget that Stamp Duty Land Tax (”SDLT”) may be payable. The SDLT is calculated on, what is known as, the Net Present Value (“NPV”) of the rent payable over the term of the lease. The minimum threshold for commercial leases is £150,000. For leases of commercial or mixed property, the SDLT rate is 1% for excess NPV up to £5 million and 2% when the NPV exceeds £5 million.
Another point to bear in mind is should any Value Added Tax be payable on the rent it will be included in the SDLT calculation – a tax on a tax so to speak.
For further information regarding the purchase of commercial property, please contact Nicky Cleightonhills on 0207 7035034 or email@example.com
Meaby’s areas of specialisms include: – the acquisition and disposal of high-value commercial and residential property, general conveyancing, leasehold enfranchisement (acting for both landlord and tenant in statutory lease extensions, collective enfranchisement and freehold purchases under the Leasehold Reform Act 1967 and Leasehold Reform and Urban Housing Act 1993), acting for both landlords and tenants in the grant of commercial leases including leisure (A3 and A4 planning) use, industrial estates (B1 and B8) use, and (A1) retail use, all manner of Landlord and tenant matters including business lease renewals, section 25 notices and section 26 requests under the Landlord and Tenant Act 1954, interim rent and dilapidation claims, rent arrears recovery, service charge disputes, break notice issues; and applications to assign/underlet, option, overage and pre-emption agreements, structured property investments often with a leasehold element, right to manage, service charge disputes, residential development under permitted development rights and all property matters arising from estate planning. We cover all areas in England and Wales. Our Central London Office is based in Mayfair. We also have an office in Buckhurst Hill which covers the outer areas of East London, Essex and Hertfordshire including Chigwell, Buckhurst Hill, Loughton and Woodford).