Stamp duty on lease rent: archived Example 4
Archived example
This HMRC page gives no calculation. It says that Example 4 moved to SDLTM13105.
- Do not rely on the archive notice for a tax figure.
- Lease-rent SDLT uses net present value.
- Check the replacement page and legislation.
Scroll down for the full analysis.
Read the original guidance here:
Stamp duty on lease rent: archived Example 4
Example 4 is no longer on this HMRC manual page. It records the move to SDLTM13105, but gives no figures or stamp duty land tax result to copy.
What this rule is about
A lease’s rent can require its own SDLT calculation. This may be separate from tax on a premium or another payment. For the legal method, use the rent due in every year of the term, apply a 3.5% discount rate, and then calculate its net present value. It values future rent at the start of the lease.
The schedule considers each year of the lease. Because the schedule examines every year of the lease and discounts rent due later, an uneven payment pattern can produce a different present value even when its total equals an evenly timed total. The total is not enough.
What the official source says
HMRC’s archived page gives one instruction: Example 4 moved to SDLTM13105. It does not state the rent, lease length, rate band, or final answer.
Although the archived page has no facts, the statute distinguishes entirely residential land from land with any non-residential part, using separate rate tables.
- The old page contains no worked calculation.
- It directs readers to a different manual page.
What this means in practice
Do not treat this archive notice as a rent calculation. It cannot confirm whether a figure in an old note or spreadsheet is still right. Small factual changes can alter the result, which is why the missing example matters.
A title cannot safely recreate an example. Payment timing, property type, and the lease term all matter. The details matter.
- Find the replacement example before comparing results.
- Check the law that applied on the lease’s effective date.
How to analyse it
Start with the signed lease and its dates. Then work through the statutory method, rather than relying on an example heading alone. Identical total rents can yield different results if payments fall in different years.
- Identify the lease term.
- List the rent due for each year.
- Check whether the land is wholly residential, because this selects the rate table.
- Calculate the rent’s net present value.
Example
Suppose a saved note refers only to “Example 4”. That is not enough to check the tax. Rent for each year, the lease term, and the date can all affect the calculation.
The supplied archive provides none of this, and no numerical result can be reproduced.
Why this can be difficult in practice
The old page is especially unhelpful where rent changes during the term, because the calculation requires the amount for each year and discounts later amounts, rather than treating the whole lease as one payment for tax purposes, however simple the total may look. A manual example is HMRC guidance, not the law, in any event.
- Old copies may omit the facts behind a figure.
- Rates can depend on the date.
- The replacement page needs checking against the legislation.
Key takeaways
- This page is an archive notice, not an example.
- Lease-rent SDLT uses a statutory present-value method.
- Do not infer a tax amount from this page.
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 56 — schedule governing tax on lease rent
- FA 2003 Schedule 5 para 2 — calculation and rate tables for lease rent
- FA 2003 Schedule 5 para 3 — net present value calculation for lease rent
- FA 2003 Schedule 5 para 8 — statutory discount rate for future rent
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 material does not contain SDLTM13105, so the moved example cannot be verified or reproduced.
- The applicable law and rate table depend on the transaction date and lease facts.
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 current text of HMRC manual page SDLTM13105.
- The lease term, rent for each year, property type, and relevant transaction date.
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 on lease rent: 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 56 - schedule governing tax on lease rent https://www.legislation.gov.uk/ukpga/2003/14/section/56/2025-11-17 - FA 2003 Schedule 5 para 2 - calculation and rate tables for lease rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/2/2025-11-17 - FA 2003 Schedule 5 para 3 - net present value calculation for lease rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/3/2025-11-17 - FA 2003 Schedule 5 para 8 - statutory discount rate for future rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/8/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm13120 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 supplied material does not contain SDLTM13105, so the moved example cannot be verified or reproduced. - The applicable law and rate table depend on the transaction date and lease facts. 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: Stamp duty on lease rent: archived Example 4
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