How leasehold stamp duty works
When you buy a new or assigned leasehold in England & Northern Ireland, SDLT can apply to two things: the premium (the lump-sum price you pay, taxed with the normal SDLT bands) and the rent you'll pay over the lease, taxed on its net present value (NPV).
The rent NPV charge
The NPV is the total rent over the lease, discounted to today's value at 3.5% a year. You pay 1% on the slice of NPV above £125,000. For most flats with a small ground rent (a few hundred pounds), the NPV is well under £125,000, so the rent charge is £0 — the SDLT you pay is just the charge on the premium.
When the rent charge actually bites
It matters for leases with high rents — some new-build or commercial leases — where the discounted rent tops £125,000. This calculator estimates the NPV from a level ground rent; stepped or reviewed rents use a more detailed HMRC calculation.
Example: £300,000 flat, £250 ground rent, 99 years
SDLT on the £300,000 premium is £5,000 (standard bands). The rent's NPV is about £6,900 — far below £125,000 — so the rent charge is £0. Total SDLT: £5,000.
Do I pay SDLT on the rent for a normal flat?
Almost never — typical ground rents give an NPV well under the £125,000 threshold, so only the premium is taxed.
Is this the same as a freehold purchase?
The premium is taxed the same way, but leaseholds add the possible rent-NPV charge, and stepped rents or lease extensions have their own rules. Confirm with your solicitor.
More United Kingdom calculators
This calculator estimates SDLT on a leasehold premium (standard bands) and a level-rent NPV at the 3.5% discount rate for England & NI, 2026/27, and is for general information only — not financial, tax or legal advice. Stepped rents, lease extensions, reliefs and surcharges follow different rules. Confirm with your solicitor. See GOV.UK. Source: GOV.UK.