SDLT scheme transaction examples: leases, sub-sales and rights
Section 75A SDLT examples
Leases, sub-sales and rights to end a lease may form part of an SDLT scheme. The examples are not exhaustive.
- Check the whole arrangement, not just the transfer.
- All section 75A conditions must be met.
- HMRC’s manual is guidance, not law.
Scroll down for the full analysis.
Read the original guidance here:
SDLT scheme transaction examples: leases, sub-sales and rights
SDLT scheme transaction examples: leases, sub-sales and rights
A lease or sub-sale can form part of an SDLT scheme. That does not, by itself, mean extra stamp duty is due. Section 75A applies only if all its conditions are met, including a comparison showing that the linked steps produce less SDLT than a direct sale.
What this rule is about
Section 75A is an anti-avoidance rule. It can apply where a seller transfers a property interest to one person through linked steps, rather than by a simple direct sale.
The idea is straightforward: if the linked steps result in less SDLT, the law can instead treat the matter as a direct sale from the original seller to the final buyer. That can change the tax result.
What the official source says
HMRC’s manual points to six examples in section 75A(3). They are examples only. HMRC’s manual says that other types of transaction can also be scheme transactions, meaning linked steps in a property deal.
- A buyer gets a lease from a freehold that the original seller owns, or previously owned.
- There is a sub-sale to another person.
- One person grants another person a lease with a right to end it.
- Someone uses a right to end a lease or take another action.
- Someone agrees not to use a right to end a lease or take another action.
- Someone changes the terms of a right to end a lease or take another action.
What this means in practice
Do not focus only on the transfer document. A right to end a lease, an agreement not to use that right, or a later change to it may matter.
For section 75A to apply, the listed step must connect with the sale and purchase, and the statutory SDLT comparison must show less SDLT than a direct sale would produce. Both conditions matter.
- A lease structure can matter even where the freehold does not move directly to the final buyer.
- A later step can matter too, because the law includes a transaction after the buyer gets the property.
- A sub-sale is an example, not an automatic answer.
- If section 75A applies, the law sets aside the land steps for SDLT and substitutes a direct sale instead.
How to analyse it
Start with the people and the property. Then map every step, including agreements that may seem separate from the transfer.
- Identify the original seller and the person who ends up with the property interest.
- List every agreement, lease, transfer and right connected with the arrangement.
- Check whether one of the statutory examples is present.
- Remember that an unlisted step can still be part of the scheme.
- Compare the SDLT on all the linked steps with the SDLT on a direct sale from the original seller to the final buyer.
Example
Rosa owns a freehold. Under a plan, Rosa gives Imran a lease from that freehold for £600,000, and she retains a right to end the lease. Later, Rosa uses that right. A lease and the use of a termination right are both statutory examples.
Still, that is not enough on its own. You would need to identify who ultimately held the property interest, determine whether the steps were connected, and compare the SDLT total with that on a direct sale.
Why this can be difficult in practice
People often assume that only a property transfer counts. Section 75A is wider than that. It can include an agreement, an offer, an undertaking, or another arrangement.
The hard question is often the link between the steps. Documents, timing, payments and the purpose of each step can all matter.
- A right to end a lease may be hidden in a lease or side letter.
- An agreement not to act can matter as much as an action taken.
- The examples do not limit the types of arrangement that may be considered.
- HMRC’s manual explains HMRC’s view; the legislation is the law.
Key takeaways
- Section 75A examples include leases, sub-sales and termination rights.
- Being an example does not make section 75A apply automatically.
- Check every linked step and compare the SDLT outcome.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 section 75A — when the anti-avoidance rule can apply; wide meaning of transaction in a scheme; examples of possible scheme transactions; replacement direct transaction where rule applies
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- Whether several steps are connected with the sale and purchase depends on the full facts.
- For a transaction after 17 November 2025, the current version of section 75A needs checking.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- All contracts, leases, side letters and termination rights
- A timeline showing each step in the arrangement
- Details of who paid and received money
- The SDLT treatment of each linked step
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION SDLT scheme transaction examples: leases, sub-sales and rights [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 section 75A - when the anti-avoidance rule can apply https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75A - wide meaning of transaction in a scheme https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75A - examples of possible scheme transactions https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 - FA 2003 section 75A - replacement direct transaction where rule applies https://www.legislation.gov.uk/ukpga/2003/14/section/75A/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09200 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - Whether several steps are connected with the sale and purchase depends on the full facts. - For a transaction after 17 November 2025, the current version of section 75A needs checking. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 31 August 2026
Useful article? You may find it helpful to read the original guidance here: SDLT scheme transaction examples: leases, sub-sales and rights
Search Land Tax Advice with Google
