On completion, Stamp Duty Land Tax is payable on leases longer than seven years. True or False?

• A. True
• B. False
• C. Only if there is a mortgage
• D. Only for leases over 100 years

Answer: (A)

The key idea is how SDLT timing depends on the length of the lease. For leases that run longer than seven years, the transaction is treated as a long lease and the SDLT is due at the completion of the lease. The amount is calculated based on the lease’s rent (and any premium) under the long-lease rates. Shorter leases are treated differently, with the tax point typically occurring at grant. So the statement is true: on completion, SDLT is payable on leases longer than seven years.