SDLT notification for a lease: archived Example 4
Archived lease example
HMRC’s archived Example 4 page provides no facts or answer. It directs readers to SDLTM12010 instead.
- A lease of seven years or more may have a notification exception
- Both the non-rent payment and relevant-rent limits matter
- Check current law and the live HMRC page before filing
Scroll down for the full analysis.
Read the original guidance here:
SDLT notification for a lease: archived Example 4
HMRC has archived the page called “Notification: Grant of a lease: Example 4”. It contains no example. It simply sends readers to SDLTM12010.
On its own, it cannot establish whether you must file an SDLT return for your lease, because it is archived, contains no example, and merely directs readers to SDLTM12010.
What this rule is about
Stamp duty land tax can apply when you take a lease, depending on the transaction, the interest you acquire, and the circumstances in which the parties grant the lease. Filing is a separate question from paying tax. The law describes a transaction as “notifiable” when it requires an SDLT return.
What the official source says
HMRC’s archived manual page gives no facts, figures, or conclusion about any particular lease. It does nothing beyond directing readers to SDLTM12010.
Its only direction is to SDLTM12010. Treat it as a signpost rather than a worked answer for your own lease.
- A leasehold interest can be a major interest in England or Northern Ireland.
- A transaction involving a major interest is normally notifiable unless an exception applies.
- For a lease of seven years or more, an exception can apply where every payment apart from rent is below £40,000.
- The relevant rent must also be below £1,000.
- Both limits must be met for that particular exception.
What this means in practice
Do not ask only, “Will I pay SDLT?” Ask a second question: “Must I file an SDLT return?” A lease may fall within a notification exception, although the answer needs care.
- If the transaction is notifiable, the buyer must send a land transaction return within 14 days after its effective date, rather than waiting until a later stage.
- The effective date is normally the completion date.
- The return includes the buyer’s tax assessment.
- Check the agreed lease term before reaching a view.
How to analyse it
Start with the lease documents, not the page heading. Consider the length of the lease, the rent, and any upfront payment together when deciding whether the stated exception is available.
- Is the lease for seven years or more?
- Is every payment other than rent below £40,000?
- Is the relevant rent below £1,000?
- If not, does a different notification rule apply?
Example
Assume Rina takes a seven-year lease. She makes a £39,999 payment other than rent, and the relevant rent is £999. On those facts, she meets the stated exception. If either figure reaches its limit, this exception does not apply.
Why this can be difficult in practice
The old page has moved, so you cannot find its Example 4 facts here. Lease paperwork can also describe payments in several ways. Labels do not settle the issue.
- A payment called rent may need closer checking.
- Some leases have special rules for working out relevant rent.
- A short lease uses a different exception.
- The source does not reproduce the live example.
Key takeaways
- The archived page is not a worked SDLT example.
- A long lease exception has two separate limits.
- Verify the current live guidance and legislation before filing.
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 76 — return duty and fourteen-day filing deadline
- FA 2003 section 77 — transactions that require a stamp duty return
- FA 2003 section 77A — lease exceptions from the stamp duty return requirement
- FA 2003 section 117 — leasehold interests treated as major interests in land
- FA 2003 section 119 — date that normally starts the filing period
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
- The supplied archived page does not reproduce the facts or conclusion of its former Example 4.
- The live SDLTM12010 page was not supplied, so its current wording has not been verified.
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.
- The lease term
- Details of rent and every other payment
- The effective date
- Any facts affecting how relevant rent is calculated
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 notification for a lease: archived Example 4 [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 76 - return duty and fourteen-day filing deadline https://www.legislation.gov.uk/ukpga/2003/14/section/76/2025-11-17 - FA 2003 section 77 - transactions that require a stamp duty return https://www.legislation.gov.uk/ukpga/2003/14/section/77/2025-11-17 - FA 2003 section 77A - lease exceptions from the stamp duty return requirement https://www.legislation.gov.uk/ukpga/2003/14/section/77A/2025-11-17 - FA 2003 section 117 - leasehold interests treated as major interests in land https://www.legislation.gov.uk/ukpga/2003/14/section/117/2025-11-17 - FA 2003 section 119 - date that normally starts the filing period https://www.legislation.gov.uk/ukpga/2003/14/section/119/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm12030 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 - The supplied archived page does not reproduce the facts or conclusion of its former Example 4. - The live SDLTM12010 page was not supplied, so its current wording has not been verified. 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 notification for a lease: archived Example 4
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