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Stamp Duty Rate For Tenancy Agreement

As the common biblical proverb says, “My people perish for lack of knowledge.” A rental agreement is a printed document that covers all the conditions that tenants and landlords agreed on before moving in. SDLT is calculated for the total term for which a tenant has a lease agreement of up to seven years. When a tenant uses a one-year lease and exercises an option to extend for an additional year, the tax office considers it to be a related transaction and the calculation of the capital value is based on the gross rent paid for both years. The SDLT is recalculated at the beginning of the second year taking into account the rent and SDLT paid for the first year.