Five-year rent reviews: HMRC’s archived SDLT example
In brief
The supplied HMRC page no longer contains its example. For variable lease rent, SDLT normally uses the highest annual rent in the first five years when considering later rent.
- The replacement example was not supplied.
- A special rule may apply to a first review near year five.
- The lease wording and dates are essential.
Scroll down for the full analysis.
Read the original guidance here:
Five-year rent reviews: HMRC’s archived SDLT example
Because this archived HMRC page says that its old example has moved to SDLTM13165, you cannot safely work out stamp duty on lease rent from this page alone. The page alone is insufficient.
What this rule is about
A lease may set rent that changes later, or rent that cannot be known at the start. SDLT has a special method for this. It stops a low early rent hiding a larger rent due later.
The key period is usually the first five years of the lease.
What the official source says
HMRC’s supplied page merely reports that “Example 2” has moved. It provides no figures, lease terms or answer. Because HMRC guidance is not law, the legislation remains the starting point.
- The archived page directs readers to SDLTM13165.
- It does not reproduce the former example.
- It does not explain the calculation.
What this means in practice
For rent after year five, where the lease has a higher rent in any 12-month period of the first five years, the law normally assumes that highest annual rent; where early rent is uncertain, you work out the amount under the rules for uncertain payments. This prevents a low early rent concealing a larger later rent.
- Read the rent-review clause closely.
- List the rent due in each early period.
- Do not assume a later review can be ignored.
How to analyse it
A limited rule can apply when a first review falls close to the end of year five. It may extend the measuring period to the review date.
- Check that the lease allows rent to be adjusted.
- Check that the first, or only, adjustment is uncertain before it happens.
- Check that the review is expressed as five years after a specified date.
- Check that specified date falls within three months before the lease starts.
- If every point applies, use the period ending on the review date instead.
Example
The supplied source gives no usable facts or figures. So it would be unsafe to recreate HMRC’s former Example 2. The missing detail may decide whether the special timing rule applies.
Why this can be difficult in practice
A review described as “at five years” may not meet the exact statutory conditions. The stated reference date matters. So does whether the new rent was genuinely uncertain before the review.
- A five-year label alone is not enough.
- The lease start date can change the result.
- A moved manual example is not evidence of the answer.
Key takeaways
- This HMRC page is archived.
- Variable rent has special SDLT rules.
- Check the exact review wording and dates.
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 51 — treatment of contingent or uncertain amounts paid
- FA 2003 section 56 — calculation of tax where a lease includes rent
- FA 2003 Schedule 17A para 7 — treatment of variable or uncertain lease rent
- FA 2003 Schedule 17A para 7A — special timing rule for first rent reviews
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 referred to by HMRC was not supplied, so its former example and calculation cannot be verified from this source.
- The right result depends on the lease wording, the review date and the rent payable before that 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 side letters
- The start date of the lease
- The specified date used for the first review
- The rent due for each period before the review
- The replacement HMRC page, SDLTM13165
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 Five-year rent reviews: HMRC’s archived SDLT example [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 51 - treatment of contingent or uncertain amounts paid https://www.legislation.gov.uk/ukpga/2003/14/section/51/2025-11-17 - FA 2003 section 56 - calculation of tax where a lease includes rent https://www.legislation.gov.uk/ukpga/2003/14/section/56/2025-11-17 - FA 2003 Schedule 17A para 7 - treatment of variable or uncertain lease rent https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/7/2025-11-17 - FA 2003 Schedule 17A para 7A - special timing rule for first rent reviews https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/7A/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/sdltm13175 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 replacement page referred to by HMRC was not supplied, so its former example and calculation cannot be verified from this source. - The right result depends on the lease wording, the review date and the rent payable before that 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 1 September 2026
Useful article? You may find it helpful to read the original guidance here: Five-year rent reviews: HMRC’s archived SDLT example
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