Linked Leases Example: SDLT Changes for Scottish Land Transactions

Linked leases granted under a single scheme for SDLT

HMRC’s archived example highlights that where several leases are granted as part of one wider plan, they may count as linked transactions for SDLT. This means the leases may need to be considered together rather than separately, depending on the facts and whether they form part of a single coordinated scheme.

• Leases can be linked for SDLT if they are granted under one development, estate plan, or organised disposal programme.
• Separate documents, different dates, or different units do not automatically stop leases from being treated as linked.
• The key question is whether the leases are part of the same overall arrangement, not just whether they look similar.
• Evidence such as negotiations, marketing, timing, and commercial purpose can help show whether there is a single scheme.
• The HMRC material is only an archived heading, so the legal test must still be taken from the legislation and any relevant case law.
• This guidance is historic for Scotland, because Scottish land transactions moved from SDLT to LBTT from April 2015.

Scroll down for the full analysis.

Linked leases under a single scheme: what this HMRC example is pointing to

This page concerns a very specific SDLT issue: when more than one lease is granted as part of a single scheme, the leases may be treated as linked. That matters because linked transactions are not always looked at in isolation for SDLT purposes. Although the source page is only an archived example heading, it points to an important idea in the SDLT rules on linked transactions and linked leases.

What this rule is about

SDLT has rules that connect transactions which are not truly separate. One category is linked transactions. Another, more specific issue, is how leases are treated where they are granted under a single scheme. The basic concern is that a series of leases may form part of one wider arrangement, rather than being independent grants.

If leases are linked, the SDLT position may need to be worked out by looking at the transactions together rather than one by one. In practice, that can affect how tax is calculated and whether the parties can treat each lease as a standalone transaction.

The source page is archived and relates to SDLT before April 2015 in Scotland. From that point, land transactions in Scotland moved out of SDLT and into Land and Buildings Transaction Tax. So this material is relevant to SDLT history and to transactions outside Scotland, but not to post-April 2015 Scottish transactions.

What the official source says

The source title indicates that HMRC treated “linked leases” and “single scheme” as a distinct topic within the miscellaneous SDLT provisions. The archived notice also makes clear that the page belongs to the pre-April 2015 SDLT regime for Scotland.

Although the extracted text does not include the underlying example itself, the title shows the key point: HMRC was addressing cases where leases are connected because they arise from a single scheme. In SDLT terms, the important legal question is whether the leases are sufficiently connected to be treated as linked transactions.

What this means in practice

If a number of leases are granted under one overall development, estate arrangement, or planned set of transactions, you should not assume each lease can automatically be assessed on its own.

The practical question is whether there is one wider scheme that ties the grants together. If there is, the leases may be linked even if:

• they are granted on different dates,
• they relate to different units or parcels, or
• different documents are used.

For taxpayers and conveyancers, this means the factual background matters. You need to look beyond the individual lease document and ask whether the transaction forms part of a coordinated plan.

This is especially important where a landlord or developer grants multiple leases in a structured way. If the grants are linked, SDLT consequences may differ from the position you would reach by examining each lease separately.

How to analyse it

A sensible way to approach this issue is to ask the following questions:

• Are there multiple lease transactions that appear commercially connected?
• Were the leases granted under one development, estate plan, or organised disposal programme?
• Is there evidence of a single scheme rather than a series of unrelated bargains?
• Do the timing, documentation, negotiations, or surrounding arrangements show a common plan?
• Is the transaction within the SDLT regime at all, bearing in mind the Scottish change from April 2015?

The key is not simply whether the leases look similar. Similarity alone may not be enough. The more important question is whether they are part of the same overall arrangement.

Where you are using HMRC manual material, it is also important to remember that the manual explains HMRC’s view. The legal test itself comes from the legislation and any relevant case law, not from the manual heading alone.

Example

Illustration: a developer completes a retail scheme and grants a number of shop leases as part of one planned letting programme. Each lease is documented separately and granted to a different tenant. Even so, if the grants form part of a single coordinated scheme, the linked transaction rules may need to be considered rather than treating each lease as wholly independent for SDLT purposes.

Why this can be difficult in practice

The phrase “single scheme” is fact-sensitive. In real transactions, there may be arguments both ways.

For example, a landlord may grant many leases in the ordinary course of business. That does not automatically mean there is a single scheme for SDLT purposes. Equally, using separate contracts or spacing out completion dates does not necessarily prevent transactions from being linked if the wider facts show one overall arrangement.

The difficulty is often evidential. You may need to examine:

• how the leases were marketed and negotiated,
• whether there was one development or disposal strategy,
• whether the grants were interdependent, and
• what the commercial reality was.

Another practical difficulty is that the source provided here is only an archived heading, not the full worked example. So while the direction of HMRC’s analysis is clear, the detailed factual pattern of HMRC’s example is not available from this extract alone.

Key takeaways

• Multiple leases may be linked for SDLT purposes if they are granted under a single scheme.
• The analysis depends on the overall arrangement, not just on whether each lease has separate paperwork.
• This archived HMRC material relates to SDLT and notes that Scottish land transactions moved to LBTT from April 2015.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Linked Leases Example: SDLT Changes for Scottish Land Transactions

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