Stamp duty returns for a lease grant: the archived Example 5
In short
HMRC has archived this page and moved its lease-grant example to SDLTM12010. Whether you must file an SDLT return depends on the statutory notification rules.
- Check the lease term.
- Check rent and other payments separately.
- Verify the replacement HMRC example.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty returns for a lease grant: the archived Example 5
Stamp duty returns for a lease grant: the archived Example 5
This HMRC page no longer reproduces an example. It states that Example 5 has moved to SDLTM12010.
When parties grant a new lease, whether they must report the grant to HMRC depends on the term, any upfront payment, the rent, and the applicable notification rules. Those rules determine the answer.
What this rule is about
Not every lease grant requires an SDLT return. Whether a lease grant is notifiable can turn on its length, any upfront payment, and the rent, particularly where the statutory tests apply in combination. The detail matters. A notifiable lease must be reported within the statutory time limit.
What the official source says
The supplied manual page is now archived, and HMRC directs readers to SDLTM12010 for Example 5. However, that page provides no facts, figures or conclusion from the example itself.
It merely directs readers to SDLTM12010. The Finance Act 2003 contains the notification tests; HMRC guidance is not the law.
- HMRC has moved the example to another manual page.
- This archived page does not reproduce the example.
- A notifiable transaction needs an SDLT return.
- The usual deadline is 14 days after the effective date.
What this means in practice
A nil tax bill does not, by itself, mean that no return is required. Check the lease against the notification rules. Begin with the lease itself, not its label.
- Check how long the lease runs.
- Separate rent from any premium or other payment.
- Check whether another transaction is linked.
How to analyse it
Apply the statutory exceptions in order. For a lease lasting seven years or more, one exception may apply if non-rent payments are below £40,000 and relevant rent is below £1,000.
- Identify the effective date.
- Check whether the lease is for less than seven years.
- For a longer lease, check the non-rent payment.
- Then check the relevant rent figure.
Example
Suppose a lease runs for seven years. If the non-rent payment is below £40,000 and the relevant rent is below £1,000, it may fall within that specific exception.
The moved HMRC example may contain additional facts that change the result. Readers should check it before relying on this exception in a particular case. Do so.
Why this can be difficult in practice
The figures are not the whole story. The law treats shorter and longer leases differently. For shorter leases, the zero-rate band is determined by the law in force on the relevant date.
- A premium is not the same as rent.
- Linked deals can affect the analysis.
- The archived page cannot answer a fact-specific question alone.
Key takeaways
- Example 5 is no longer on this HMRC page.
- Check SDLTM12010 for HMRC’s moved example.
- Use the statutory notification tests for the legal answer.
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 — duty to file a return for notifiable transactions
- FA 2003 section 77 — which land transactions are notifiable
- FA 2003 section 77A — exceptions from notification for certain lease transactions
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 replacement page, SDLTM12010, was not supplied, so this article cannot reproduce or verify HMRC’s moved Example 5.
- The transaction date is needed before applying any zero-rate threshold.
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
- the premium or other non-rent payment
- the relevant rent figure
- the effective date of the lease grant
- any linked lease or land transaction
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 Stamp duty returns for a lease grant: the archived Example 5 [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 - duty to file a return for notifiable transactions https://www.legislation.gov.uk/ukpga/2003/14/section/76/2025-11-17 - FA 2003 section 77 - which land transactions are notifiable https://www.legislation.gov.uk/ukpga/2003/14/section/77/2025-11-17 - FA 2003 section 77A - exceptions from notification for certain lease transactions https://www.legislation.gov.uk/ukpga/2003/14/section/77A/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm12035 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. HMRC guidance is HMRC's 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 replacement page, SDLTM12010, was not supplied, so this article cannot reproduce or verify HMRC's moved Example 5. - The transaction date is needed before applying any zero-rate threshold. 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 1 September 2026
Useful article? You may find it helpful to read the original guidance here: Stamp duty returns for a lease grant: the archived Example 5
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