SDLT rent rate thresholds: archived HMRC Example 5
Archived HMRC rent example
HMRC’s former Example 5 page contains only a redirect to SDLTM13105. It does not give the facts or result of the example.
- Do not rely on the archived title for a rate or threshold.
- Lease rent uses a net present value calculation.
- Check the law that applied when the lease took effect.
Scroll down for the full analysis.
Read the original guidance here:
SDLT rent rate thresholds: archived HMRC Example 5
This HMRC page no longer provides a stamp duty calculation. HMRC has archived it and directs readers to another manual page. Because HMRC archived the page and directs readers elsewhere, its title cannot safely serve as evidence of a rent threshold or tax result. Use the relevant source instead.
What this rule is about
SDLT may apply to rent under a lease, rather than only to a lump sum paid for a property. The law calculates the value of that rent across the lease term. It then applies the relevant rent rate bands.
What the official source says
The supplied HMRC page says only: “Page archived. Example moved to SDLT13105.” Beyond that notice, it provides neither Example 5 nor its figures or answer. Nothing further is set out.
- The former example is not reproduced on this page.
- HMRC directs readers to manual page SDLTM13105.
- An HMRC manual is guidance, not the law.
What this means in practice
Before calculating anything, start with the lease terms and the law that applied when the lease took effect, rather than relying on the archived page alone. Later rates may change the answer.
- Check the lease start date.
- List the rent due for each year.
- Check whether the property is wholly residential.
How to analyse it
For the calculation, use the statutory method to calculate the net present value of the rent before applying the relevant rate bands. The statutory method discounts future rent. Schedule 5 gives the calculation method and the rate bands.
- Identify the term of the lease.
- Work out rent for each lease year.
- Calculate the net present value using the statutory method.
- Apply the bands that applied on the effective date.
Example
This source supplies no worked figures. Because the archived page neither states the rent nor gives the lease length, property type, or result, no one can reconstruct former Example 5 from it. Replacement figures could create a different example.
Why this can be difficult in practice
People often consider only the yearly rent. That is not the full calculation. The lease term, changing rent, and the lease date can all matter.
- A yearly rent figure is not the taxable value by itself.
- Residential and other land use different rate tables.
- Historic and current thresholds may differ.
Key takeaways
- This HMRC page is archived.
- It gives no usable Example 5 calculation.
- Check the lease date and statutory rent rules.
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 — rent tax is calculated under schedule 5
- FA 2003 Schedule 5 para 1 — when the rent calculation rules apply
- FA 2003 Schedule 5 para 2 — rate bands and net present value calculation
- FA 2003 Schedule 5 para 3 — how lease rent net present value is calculated
- FA 2003 Schedule 5 para 8 — the discount rate used for rent calculations
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 source does not give the facts, date or calculation from the former Example 5.
- The current status of the rate bands must be checked for a lease after 17 November 2025.
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 effective date
- The lease term and rent due in each year
- Whether the land is entirely residential
- Any current HMRC material at SDLTM13105
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 rent rate thresholds: archived HMRC 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 56 - rent tax is calculated under schedule 5 https://www.legislation.gov.uk/ukpga/2003/14/section/56/2025-11-17 - FA 2003 Schedule 5 para 1 - when the rent calculation rules apply https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/1/2025-11-17 - FA 2003 Schedule 5 para 2 - rate bands and net present value calculation https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/2/2025-11-17 - FA 2003 Schedule 5 para 3 - how lease rent net present value is calculated https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/3/2025-11-17 - FA 2003 Schedule 5 para 8 - the discount rate used for rent calculations https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/8/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm13125 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 source does not give the facts, date or calculation from the former Example 5. - The current status of the rate bands must be checked for a lease after 17 November 2025. 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 rent rate thresholds: archived HMRC Example 5
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