Stamp Duty On Tenancy Agreement


From December 2003, residential leases will have the potential to apply to the Stamp Duty Land Tax (SDLT). The SDLT threshold was raised to GBP 120 000 in March 2005 and gbp 125 000 in March 2006. SDLT is a tax levied on rental transactions, paid by tenants and calculated on the amount of gross rent for the duration of the rental agreement, less a default discount (currently 3.5%). This calculation gives an amount called capital value (NPV). As of 17 March 2006, no stamp duty property tax is payable for a net goodwill (NPV) of less than £125,000. If the value of the capital is greater than £125,000, the Stamp Duty Land Tax is calculated as 1% of the difference between the NPV and £125,000. If the value of the capital rises. B at £128,000, the SDLT to be paid is 1% of the difference between the value of the capital and £125,000, or 1% of £3000, or £30. These are examples and vary from time to time. It is recommended that you legally consult the amount of your liability for SDLT. However, initial expenses, such as advertising costs, attorneys` fees, stamp fees and brokerage commissions, cannot be controlled.

These expenses are necessary to create a source of rental income and are not related to the production of rental income. A monthly stay can be written on paper without registration. Stamp duty on rental contracts is more important for short to long term stays.. . . .