Archived example: variable lease rent and SDLT NPV
Archived HMRC example
The supplied HMRC page says its former example for variable or uncertain lease rent is no longer relevant.
- It gives no replacement calculation.
- Do not rely on old figures.
- Check the lease wording and applicable law.
Scroll down for the full analysis.
Read the original guidance here:
Archived example: variable lease rent and SDLT NPV
HMRC offers no usable stamp duty example on this page. HMRC has archived the page and says that its example is no longer relevant. Do not reuse figures from an older copy.
What this rule is about
Lease rent may change during the term, or it may depend on an event that has not yet happened, under the particular clauses in the agreement. That matters. SDLT values rent across a lease term by using net present value, usually called NPV, when the rent changes or depends on future events. The calculation can change.
That can affect the tax calculation. But this source gives no current calculation to follow.
What the official source says
HMRC’s manual page gives one clear message: the example once published there is no longer relevant. It provides no replacement facts, figures or method.
- The page is archived.
- Its former example should not be treated as current guidance.
- No updated worked calculation appears on the supplied page.
What this means in practice
An old illustration can look convincing because it contains numbers, even when those numbers reflect lease terms, assumptions, or law that no longer apply. It may mislead. That does not make it safe for your lease. The lease wording and the law for the relevant date matter.
- Do not copy an old NPV result into a return.
- Check whether the rent can rise, fall or vary.
- Keep the lease and rent schedule with the calculation.
How to analyse it
Start with the agreement, not an online example. The legislation has rules for variable, contingent and uncertain rent.
- Identify each period for which rent is due.
- Read every review and turnover-rent clause.
- Separate known rent from an amount that remains uncertain.
- Work out the NPV under the law applying on the transaction date.
Example
HMRC cannot give a worked example from this source. HMRC removed the only example and did not supply replacement figures. Creating a replacement calculation with new numbers would imply an outcome that this archived source neither gives nor supports for any current lease in practice. Do not infer one.
Why this can be difficult in practice
Several quite different lease clauses can make rent “Variable”, including clauses that change rent at set points or make it depend on events still to occur. They need separate analysis. A fixed increase is not the same as rent based on future sales. Small drafting differences may change the inputs to the calculation.
- A rent review may use information not yet available.
- Turnover rent may depend on future trading.
- An old example may reflect legislation that has since changed.
Key takeaways
- This HMRC page is archived.
- It contains no current NPV example.
- Use the lease terms and current legislation instead.
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 5 para 3 — calculating the net present value of lease rent
- FA 2003 Schedule 17A para 7 — working out variable or uncertain lease rent
- FA 2003 section 51 — treating contingent or uncertain amounts for stamp duty
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 explain why its former example ceased to be relevant.
- A current calculation depends on the lease terms and the law applying on the relevant transaction date.
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 rent-review clauses
- the rent due in each relevant period
- the lease term and start date
- the transaction’s effective 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 Archived example: variable lease rent and SDLT NPV [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 5 para 3 - calculating the net present value of lease rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/3/2025-11-17 - FA 2003 Schedule 17A para 7 - working out variable or uncertain lease rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/7/2025-11-17 - FA 2003 section 51 - treating contingent or uncertain amounts for stamp duty https://www.legislation.gov.uk/ukpga/2003/14/section/51/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm13140 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 explain why its former example ceased to be relevant. - A current calculation depends on the lease terms and the law applying on the relevant transaction date. 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: Archived example: variable lease rent and SDLT NPV
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