SCHEDULES

SCHEDULE 5Stamp duty land tax: amount of tax chargeable: rent

Net present value of rent payable over term of lease

3

The net present value (v) of the rent payable over the term of a lease is calculated by applying the formula:

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where—

  • ri is the rent payable F1... F2in respect of year i,

  • i is the first, second, third, etc year of the term,

  • n is the term of the lease F1..., and

  • T is the temporal discount rate (see paragraph 8).