Example of SDLT overlap relief

Leases attract Stamp Duty Land Tax (SDLT).

Sometimes a new lease is signed for the same property before the old lease expires, example when a lease is extended.

In such cases a relief called Overlap relief is available to avoid double taxation. A better back ground to overlap relief is given in SDLTM16010.

Given below is an example of calculation of this overlap relief with an spreadsheet attached which may help tax practitioners.

Current lease details:
Start date            14th Dec 2009
Lease term         15 years
End date              13th Dec 2024
Rent                      £85k + VAT = £102k

 

New Lease details:
Start date            31st Jan 2017
Lease term         20 years
End date              30th Jan 2037
Rent                      £110k + VAT = £132k

Below is the screen shot calculation of the SDLT payable.
To download the excel file click here – SDLT Overlap relief calculation

Capture

 

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