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Commercial Lease Stamp Duty Calculator

Enter annual rent, lease term, location, and any lease premium to estimate commercial lease SDLT, LBTT, or LTT.

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Inputs

Lease rentLevel rent NPV estimate
Premium and locationOptional lease premium and tax regime
Results update automatically

Results

Result Enter values to calculate.
Your result explanation will appear here.

Useful next checks

  • Check the inputs before relying on the result.
  • Try a second scenario to compare outcomes.
  • Read the guide below for context.

Intro

Use this commercial lease stamp duty calculator to estimate tax on a new commercial lease from annual rent, lease term, property location, and any lease premium. It covers SDLT, LBTT, and LTT lease rent bands checked against official sources on 20 May 2026.

What this commercial lease calculator does

The calculator estimates:

  • Net present value of level annual rent.
  • Tax due on rent NPV.
  • Tax due on any lease premium.
  • Total estimated lease transaction tax.

It is designed for quick planning before you ask a solicitor or accountant to confirm the exact filing position.

How it works

New commercial leases can be taxed in two parts. The lease premium is taxed using the non-residential purchase bands. The rent is converted into a net present value, then rent NPV bands are applied.

This calculator assumes the annual rent stays level throughout the term and discounts future rent using the 3.5% temporal discount rate used in official lease NPV guidance.

Example calculation

For a 10-year commercial lease in England or Northern Ireland with annual rent of 50,000 and no premium:

  • The calculator discounts each year of rent at 3.5%.
  • The rent NPV is about 415,830.
  • The first 150,000 of rent NPV is taxed at 0%.
  • The remaining rent NPV is taxed at 1%.

The estimated SDLT on rent is about 2,658.

How to use the result

Use the estimate to compare lease terms, rent levels, and premium structures. A lower rent with a higher premium can shift tax between the rent and premium calculations, so review both parts of the breakdown.

For purchase scenarios, use the Commercial Stamp Duty Calculator.

Assumptions and limitations

  • The calculator assumes level annual rent.
  • It does not model rent-free periods, stepped rent, turnover rent, reviews, assignments, linked transactions, reliefs, transitional rules, or filing deadlines.
  • Enter rent inclusive of VAT where VAT applies; the calculator does not decide VAT treatment.
  • Lease tax rules can be technical, especially where rent and premium interact.
  • Confirm the final figure with a solicitor, accountant, or the relevant official calculator before signing or completion.

FAQs

  • What is NPV? Net present value discounts future rent payments so tax bands can be applied to a present-value estimate of rent over the lease term.
  • Can I enter changing rent? No. Version one assumes the same annual rent for the full lease.
  • Does a lease premium use the same bands as a purchase? In this calculator, the premium is taxed using the current non-residential purchase or premium bands for the selected location.

Related calculators

Sources

Frequently asked questions

What is rent NPV?

Net present value discounts future rent payments back to a present-day value before lease rent tax bands are applied.

Can I model changing rent?

No. Version one assumes level annual rent throughout the lease term.

Does the calculator include VAT?

Enter rent inclusive of VAT where VAT applies. The calculator does not decide whether VAT should be charged.