SDLTM11020: Rent and Services Example 1 Archived, See SDLT11015

SDLT and Lease Payments That Include Services

This archived HMRC guidance highlights a Stamp Duty Land Tax issue that can arise when a lease payment covers both the right to occupy property and items such as services or maintenance. The archived page does not give the full example or HMRC’s reasoning, but it shows that you need to consider carefully whether all or part of an all-inclusive payment counts as rent for SDLT purposes.

• SDLT on leases can depend on the rent payable, so it is important to work out what counts as rent under the lease.
• A single lease payment may cover occupation of the property as well as services, facilities, maintenance, insurance, or similar items.
• The archived HMRC page does not explain the rule in full; it only says that the example was moved to SDLTM11015.
• You should not assume that every regular payment by a tenant is treated in the same way for SDLT just because it is paid under the lease.
• The key point is the legal character of the payment, not only the label used in the lease or the way the parties describe it commercially.
• When reviewing a lease, identify each payment, see whether sums are separately stated, and check the current HMRC example if the payment is all-inclusive.

Scroll down for the full analysis.

SDLT and rent: when service elements are included in the rent

This page is about an older HMRC manual entry that has been archived because the example was moved elsewhere. The practical point is that, for Stamp Duty Land Tax purposes, questions can arise where rent under a lease includes amounts that relate to services or other elements as well as the right to occupy the property.

What this rule is about

SDLT on leases can depend partly on the rent payable under the lease. That makes it important to identify what counts as rent for SDLT purposes. In practice, lease payments are not always described neatly. A tenant may pay a single amount that covers occupation of the property and other matters, such as services, maintenance, or facilities.

The archived page title shows that the original topic was rent that is inclusive of services or similar items. That is a recognised SDLT issue because the tax treatment depends on whether a payment is properly part of the rent under the lease, or something else.

What the official source says

The source provided here does not contain the substantive example. It simply states that the page has been archived and that Example 1 was moved to SDLTM11015.

So, on its own, this source does not set out the rule, the facts of the example, or HMRC’s reasoning. What it does establish is only that this material formed part of HMRC’s guidance on chargeable consideration for rent where the rent is inclusive of services or similar items.

What this means in practice

The practical message is limited because the full example is not included in the source text. However, the heading tells you the issue to focus on: where a lease payment includes both occupation and service-type elements, you need to consider whether the whole amount is treated as rent for SDLT, or whether any part falls outside that treatment.

This matters because SDLT on leases is calculated by reference to chargeable consideration, and rent is a distinct category within that calculation. If a payment is treated as rent, it may affect the SDLT return and the tax due. If it is not rent, the analysis may be different.

For someone reviewing a lease, the key practical point is not to assume that every amount paid regularly by the tenant is automatically analysed in the same way. The label used in the lease helps, but it is not always decisive. The legal character of the payment matters.

How to analyse it

Given the limited source material, a careful approach would be:

• Identify the payments the tenant must make under the lease.
• Separate the amount described as rent from any separately charged service payments, insurance payments, or other sums, if the lease does so.
• Where the lease uses a single all-inclusive payment, ask what that payment is really for.
• Check whether the official HMRC example now located at SDLTM11015 gives a worked illustration that matches the facts you are dealing with.
• Keep in mind that the SDLT question is about chargeable consideration and the treatment of rent under the lease, not just accounting presentation or commercial wording.

Example

Illustration: a tenant takes a lease of offices and pays one monthly amount under the lease. The commercial deal is that this amount covers use of the premises and certain building services. The SDLT question is whether that single payment is treated wholly as rent, or whether the service element needs separate analysis. The archived source does not answer that question by itself, but it confirms that HMRC has specific guidance dealing with this type of arrangement.

Why this can be difficult in practice

These cases can be fact-sensitive. A lease may use broad wording, or may bundle several obligations into one payment. In some cases, the documents clearly split the sums. In others, they do not. That can make it harder to decide how much is truly rent for SDLT purposes.

Another difficulty is that this source is only a signpost to a moved example. Without the replacement text, you cannot safely infer HMRC’s full view from the archive notice alone.

Key takeaways

• This archived page does not contain the substantive example; it only says the example was moved to SDLTM11015.
• The issue concerns SDLT treatment where lease rent includes service or similar elements.
• In practice, the correct analysis depends on the legal character of the payments under the lease, not just the label used.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: SDLTM11020: Rent and Services Example 1 Archived, See SDLT11015

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