Which value?

A client is considering leasing a property which he owns personally to a company that is connected with him under the provisions of CTA 2010 s 1122.

We appreciate therefore that FA 2003 s 53 will come into play with regard to the stamp duty land tax charge but we are having difficulty understanding precisely how the charge under s 53(1A) will be calculated.

On reflection it seems to us that logically stamp duty land tax should simply be charged on the market value rent (using HMRC’s NPV – ‘net present value’ – calculator) irrespective of what rent is actually charged if any and that is what the commentary we have come across indicates.

However...