Lease Notification and Continuation Details – SDLTM12000 to SDLTM12045

SDLT notification for leases: grant and continuation

This part of HMRC’s SDLT manual is about when lease transactions may need to be reported to HMRC. The source is only a contents page, but it shows that HMRC treats the grant of a lease and the continuation of a lease as separate topics, which can matter when deciding whether a land transaction return is needed.

• HMRC separates lease notification into two categories: the grant of a lease and the continuation of a lease.
• This section is about reporting requirements, not the full SDLT calculation.
• A new lease will usually be considered under the rules for the grant of a lease.
• If an existing lease carries on, is extended, or is treated as continuing, separate SDLT analysis may be needed.
• The contents page does not give the detailed legal rules, so the underlying guidance and legislation must be checked.
• In practice, the SDLT position may depend on factors such as timing, term, rent, and the legal reason why the lease continues.

Scroll down for the full analysis.

SDLT notification rules for leases: what this part of the HMRC manual covers

This page is about the scope of a section of HMRC’s SDLT manual dealing with notification for leases. The source material is only a contents page, so it does not set out the detailed legal rules itself. What it does show is that HMRC treats two lease situations separately for notification purposes: the grant of a lease, and the continuation of a lease. That distinction matters because SDLT reporting obligations for leases can depend on what has happened to the lease and when.

What this rule is about

In SDLT, a lease is not always a one-off event. A lease may first be granted, and later it may continue beyond its original term or be treated as continuing for SDLT purposes. Those events can affect whether a land transaction return is needed and what information must be given.

The source page sits within the notification part of the SDLT manual. That tells the reader that the focus here is not the whole tax calculation, but the reporting side: when HMRC expects a transaction involving a lease to be notified and how lease events are categorised.

What the official source says

The source material is a contents page headed “Notification: Contents”. Within that section it lists two relevant sub-sections:

• “Grant of a lease: contents”
• “Continuation of a lease: contents”

On its own, this does not provide the detailed rule. It does, however, indicate that HMRC’s guidance on lease notification is organised around those two separate topics.

What this means in practice

If you are dealing with SDLT on a lease, the first practical question is: what exactly has happened?

• If a new lease has been granted, you would usually start with the rules on the grant of a lease.
• If an existing lease has carried on, been extended, or is treated as continuing, you would need to consider the separate guidance on continuation of a lease.

This matters because SDLT on leases often turns on timing, term, rent, and whether there has been a later event that changes the original position. A person reviewing a transaction should not assume that all lease-related reporting sits under the original grant. HMRC’s structure suggests that a later continuation may need separate analysis.

How to analyse it

Based on the source page, a sensible way to approach the issue is:

1. Identify whether there is a lease at all, rather than a freehold transfer or some other land transaction.
2. Ask whether the relevant event is the original grant of the lease or something happening later to an existing lease.
3. If it is the original grant, look at the SDLT notification rules and lease rules that apply at the time the lease was first granted.
4. If it is a continuation, check whether SDLT treats that continuation as something that can affect notification or require further reporting.
5. Read the lease notification point together with the wider SDLT rules on chargeable consideration, term, rent, and any later changes to the lease position.

The key point from this source is structural but important: “grant” and “continuation” are not being treated as the same thing.

Example

Illustration: a tenant takes a lease of commercial premises. At the outset, the SDLT position would usually be considered under the rules for the grant of a lease. If, later on, the tenant remains in occupation and the lease continues in a way that is relevant for SDLT, the original grant analysis may not be enough on its own. You would then need to consider the separate HMRC material on continuation of a lease to decide whether there is any further notification consequence.

Why this can be difficult in practice

The source itself is very limited, so it does not explain what HMRC means in detail by “continuation of a lease” in this context. In practice, lease arrangements can continue in different ways, and the SDLT effect may depend on the legal mechanism involved and the facts. For example, the answer may differ depending on whether there is a fresh grant, a statutory continuation, or some other change in occupation rights. That is why it is important not to treat every ongoing lease as merely part of the original grant without checking the specific SDLT rules.

Key takeaways

• This part of the HMRC manual separates lease notification into grant of a lease and continuation of a lease.
• That distinction matters because a later continuation may need its own SDLT analysis.
• The source page is only a contents page, so the detailed legal effect must be taken from the underlying sections and the legislation.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Lease Notification and Continuation Details – SDLTM12000 to SDLTM12045

View all HMRC SDLT Guidance Pages Here