SDLT when a lease continues after its fixed term
Lease continuation and SDLT
A lease that continues after its fixed term may be treated as lasting longer for SDLT. That can create a later return or extra tax.
- Check the original end date
- Check whether occupation continued
- Check for a replacement lease
Scroll down for the full analysis.
Read the original guidance here:
SDLT when a lease continues after its fixed term
A lease with a fixed term can continue after that term ends even though nobody signs a new agreement. If the fixed term has ended, the tenant remains in occupation, and no replacement agreement has been signed, SDLT may treat the lease as lasting longer. That can lead to a further return or extra tax.
What this rule is about
This rule applies when a fixed-date lease continues after its end because the tenant remains in occupation and the parties sign no replacement agreement.
That continuation matters. For most SDLT purposes, legislation treats the lease as extending by one year at a time when it continues beyond its fixed end date, even if the tenant simply stays put. This is easy to miss.
What the official source says
HMRC has archived the page named “Example 1”. It contains no example and says that the example moved to SDLTM12050. HMRC publishes manuals as guidance, not law. Instead, legislation sets the result.
- The rule covers a lease that continues after a fixed term.
- It also covers one that continues automatically by law.
- The lease is first treated as ending on its original date.
- If it continues, it is treated as one year longer.
- The process can repeat for each further year.
What this means in practice
Do not regard the SDLT work as finished when the original lease is granted, because the position can change if the lease continues beyond its fixed end date. A later deemed extension can make the transaction notifiable if the lease continues after its fixed end date, so you must file a return. It can also create tax or extra tax.
- A newly notifiable transaction has a 14-day return deadline.
- Tax or extra tax can require a further return within 30 days.
- Any tax due is based on the transaction’s effective date.
How to analyse it
Start with the paperwork and the actual timeline. Focus on what happened after the fixed term, not just what the parties expected.
- Find the original fixed end date.
- Check whether the tenant stayed after that date.
- Check whether the lease ended during the following year.
- Look for a new lease of the same or nearly the same premises.
- Work out whether the deemed longer term changes the SDLT position.
Example
When Sam’s lease ends on 31 March but continues after that date, HMRC may, for SDLT, treat it as lasting until 31 March of the next year.
If that extra year makes the transaction notifiable, Sam must consider the special later-return rule. The archived HMRC page provides no figures for its former example.
Why this can be difficult in practice
Although an informal holdover may seem unable to matter for stamp duty, it can change the answer if the parties grant a replacement lease for the same premises. It can.
- The lease wording may allow continuation automatically.
- The actual end date may differ from the planned end date.
- A replacement lease may alter the treatment.
Key takeaways
- A continued fixed-term lease can create a later SDLT issue.
- Check each year after the original end date.
- The cited HMRC page is archived and contains no example.
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 Schedule 17A para 3 — continued leases and later SDLT return deadlines
- FA 2003 section 77 — when a land transaction is notifiable
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 archived page does not give the facts or calculation from its former example.
- The result depends on the lease terms, when it ended or continued, and any replacement lease.
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 signed lease and any extension or replacement lease
- Dates showing when the fixed term ended and when occupation continued
- Rent records for the period after the fixed term
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 when a lease continues after its fixed term [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 Schedule 17A para 3 - continued leases and later SDLT return deadlines https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/3/2025-11-17 - FA 2003 section 77 - when a land transaction is notifiable https://www.legislation.gov.uk/ukpga/2003/14/section/77/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm12055 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 archived page does not give the facts or calculation from its former example. - The result depends on the lease terms, when it ended or continued, and any replacement lease. 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 when a lease continues after its fixed term
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