SDLT may be payable by a tenant when they take on a lease. This is based on the Net Present Value. The HMRC provide a useful tool for calculating the SDLT payable.
The calculation is based on the highest known rent in the first 5 years of the lease. If there is a rent review in the first five years then once this has taken place a further SDLT return is required and any SDLT due has to be paid.
Rent reviews after the first 5 years are ignored save for abnormal rent reviews. Abnormal rent reviews only apply to leases granted after the 1st December 2003. The tenant needs to assess whether the rent reviews is abnormal, there is a calculator on the HMRC but the calculation is quite complex. If the rent review is abnormal then any SDLT due will need to be paid.
SDLT is a complex area and therefore we would always suggest that our clients take specialist advice on such.