Stamp Duty on Leases

Stamp duty relating to a lease, sub-lease or licence to occupy premises or transfer or extension of a lease, sub-lease or licence is determined by multiplying the annual rental (which must be the market value) stipulated in the contract by the number of years (including rounding up any fraction of the year upwards) up to a maximum term of 21 years.  The amount of stamp duty payable is charged at a rate of 0.5% on the first £100,000 (including rounding up the nearest £100) of the quantum of the multiples referred to above.  If this figure is in excess of £100,000 then the amount charged is 0.5% for the first £100,000 plus 0.75% on the excess thereof. 

It should be noted that if there are predetermined rent reviews in the lease agreement then these figures should be taken into account in determining the total amount of annual rental. 

If any additional consideration by way of premium or reverse premium for example is payable, then this will attract additional stamp duty at the same rate regarding purchases of freehold property (see the stamp duty calculator for freehold purchases).

In respect of transfers of lease of dwelling accommodation which fall within the financial limits of the Building Loans (Miscellaneous Provisions) (Jersey), Regulations, 1961 where the purchaser qualifies as a first time buyer. If the market value of the subject property at the time of passing contract:

(i) Does not exceed £150,000 then the rate applicable will be £150;

(ii) Exceeds £150,000 but does not exceed £175,000 then the rate applicable will be £62.50 in respect of the first £100,000 plus 0.125% on the excess consideration subject to a minimum of £150;

(iii) Exceeds £175,000 but does not exceed £200,000 then the rate applicable will be £125 in respect of the first £100,000 plus 0.25% on the excess consideration subject to a minimum of £150;

(iv) Exceeds £200,000 but does not exceed £300,000 then the rate applicable will be £187.50 in respect of the first £150,000 plus 0.375% on the excess consideration subject to a minimum of £150.

In the event the purchaser does not qualify as a "first time buyer" then the normal freehold rates apply.

All of the above contracts in this section will attract the £50 registration fee and the £20 Jurats’ fees.

Click here for the Leasing Stamp Duty Calculator.