Land Transaction Tax return guidance - About the calculation (where a non-residential lease is involved)
Guidance on how to complete a Land Transaction Tax (LTT) return using Welsh Revenue Authority (WRA) services.
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What is the term of the lease (years)?
Enter the number of years the lease is due to run for, ignoring any potential early termination.
If the lease is not due to run for a whole number of years, round down to the nearest whole year.
For example, if the lease is due to run for 10 years and 6 months, enter ‘10’.
Rent year 1
Enter the amount of rent payable for the first year of the lease. Include any rent that’s contingent on uncertain events.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
If no rent is payable to the landlord in respect of the first year, enter ‘£0’.
Rent year 2
Enter the amount of rent payable for the second year of the lease. Include any rent that’s contingent on uncertain events.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
If no rent is payable to the landlord in respect of the second year, enter '£0'.
Rent year 3
Enter the amount of rent payable for the third year of the lease. Include any rent that’s contingent on uncertain events.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
If no rent is payable to the landlord in respect of the third year, enter ‘£0’.
Rent year 4
Enter the amount of rent payable for the fourth year of the lease. Include any rent that is contingent on uncertain events.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
If no rent is payable to the landlord in respect of the fourth year, enter ‘£0’.
Rent year 5
Enter the amount of rent payable for the fifth year of the lease. Include any rent that is contingent on uncertain events.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
If no rent is payable to the landlord in respect of the fifth year, enter ‘£0’.
Relevant rent
Enter the ‘relevant rent’.
The relevant rent is the average annual rent payable across the full term of the lease.
Further guidance on relevant rent
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
Highest rent payable in any consecutive 12 months, in the first 5 years
Enter the highest amount of rent payable in any 12 consecutive months, within the first 5 years of the lease agreement.
Note that this is not necessarily the highest value you entered for the rent years provided.
|
|
Rent |
|---|---|
|
Year 1: first 6 months |
£0 |
|
Year 1: second 6 months |
£10,000 |
|
Year 2: first 6 months |
£10,000 |
|
Year 2: final 6 months |
£0 |
In this example, the rent for year 1 is £10,000 and the rent for year 2 is also £10,000. But the highest rent payable in any 12-month consecutive period is £20,000.
Enter the amount in pounds sterling. Do not round to the nearest pound, show the pence after the decimal point.
What is the net present value?
You may find it helpful to use our tax calculator.