Archived Page: SDLT Calculation Example on Variable Rent NPV

Archived HMRC SDLT Example on Variable or Uncertain Rent

This archived HMRC page does not give a current rule for calculating SDLT on lease rent. Its only real message is that an old example about the net present value of variable or uncertain rent is no longer relevant, so it should not be relied on when working out SDLT.

  • The page is archived and HMRC says the example is no longer relevant.
  • It does not set out a current SDLT calculation, rule, or method.
  • This matters because SDLT on lease rent, especially variable or uncertain rent, can be technical and may change over time.
  • An old worked example could mislead if the law or HMRC guidance has since changed.
  • The safe approach is to check the current legislation and up-to-date HMRC guidance before completing an SDLT return.
  • Always confirm whether any HMRC manual example is still current before relying on it.

Scroll down for the full analysis.

Nick Garner

Need an indemnified letter of advice? Email me your situation — my initial assessment is always free. If a formal letter is needed, fixed fee from £350, no VAT.

✉️ [email protected]

Insured by Markel International (up to £250k per claim). Learn more →

Archived SDLT example on variable or uncertain rent

This page records that a former HMRC example about calculating the net present value of variable or uncertain rent has been archived and is no longer relevant. The practical point is simple: you should not rely on that example as current guidance when working out SDLT on rent.

What this rule is about

SDLT can apply to rent under a lease. Where rent is variable or uncertain, the tax calculation can be more complicated because SDLT on rent is based on the net present value of the rent over the relevant term. Older HMRC manual pages sometimes included worked examples to show how that calculation operated.

This source does not set out a rule or calculation. It only states that a particular example has been archived and is no longer relevant.

What the official source says

The official source says only that the page was archived and that the example is no longer relevant.

That means the example should not be treated as a current statement of HMRC practice or as a reliable illustration of the present law.

What this means in practice

If you were looking for guidance on SDLT and rent that is variable or uncertain, this page does not help with the calculation itself. Its significance is negative rather than positive: it tells you not to use this example.

In practice, that matters because SDLT lease calculations can be sensitive to legislative changes, changes in HMRC guidance, and changes in how variable rent is treated. An outdated example can easily mislead if the law or method has moved on.

So the safe practical approach is to find the current legislation and any current HMRC guidance that has replaced this archived material.

How to analyse it

Where you come across an archived SDLT manual example like this, ask:

  • Is this page still current, or has HMRC marked it as archived or no longer relevant?
  • Am I dealing with rent under a lease, rather than consideration for a freehold transfer?
  • Is the rent fixed, variable, contingent, uncertain, or subject to review?
  • What do the current SDLT rules say about calculating tax on rent in that situation?
  • Is there newer HMRC manual guidance or legislation that now governs the point?

The main lesson from this source is procedural: always check whether a manual example is current before relying on it.

Example

Illustration: a reader finds an old HMRC manual page showing how to calculate SDLT on a lease where the rent changes over time. If that page is marked archived and no longer relevant, the reader should not use the figures or method in that example to complete an SDLT return. Instead, they should locate the current rules and current guidance for variable or uncertain rent.

Why this can be difficult in practice

Archived tax material can still appear in search results, internal document collections, or older professional notes. That can create a false impression that the example remains usable. With SDLT, this is particularly risky because lease-rent rules are technical and depend on the legislation in force at the relevant time.

Another difficulty is that an archived example does not explain why it is no longer relevant. The reason could be a legislative amendment, a change in HMRC guidance, or the fact that the example related to an earlier regime. This source does not say which applies.

Key takeaways

  • This source does not provide a current SDLT rule or calculation.
  • HMRC has marked the example as archived and no longer relevant.
  • You should use current legislation and current guidance for SDLT on variable or uncertain rent.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Archived Page: SDLT Calculation Example on Variable Rent NPV

View all HMRC SDLT Guidance Pages Here

Search Land Tax Advice with Google



£350
NO VAT
— Indemnified Letter of Advice
Fixed fee £350 for most letters. Complex cases up to £1,250 — always quoted in advance. Insured by Markel International (up to £250,000 per claim).

Nick Garner

Conveyancer holding things up until they have written SDLT advice? I’ll provide a formal, insured opinion so they can proceed.

How it works

1

Email me the details of your situation. I’ll reply in writing — free of charge — with a clear explanation of your legal position.

2

You decide whether that’s enough. Often the free email is all you need — you can forward it to your solicitor for their own assessment.

3

If a formal letter is needed, we go from there. I’ll quote you a fixed fee before any paid work begins.

Start with step 1. No commitment, no cost — just email me your situation and I’ll clarify the legal position.

✉️ Email: [email protected]