Archived Page: SDLTM14100 – Lease Holding Over Information

SDLT and lease terms when a tenant stays on after expiry

For Stamp Duty Land Tax, a lease does not always end neatly when its fixed term expires. If a tenant stays in occupation, this is often called “holding over”, but that label alone does not decide the SDLT position. The key issue is the legal basis of the continued occupation and whether it changes the lease term or creates a new chargeable land transaction.

• HMRC previously had guidance on “holding over”, but the source mentioned here is archived and no longer current.
• You should not assume the original lease simply continues unchanged, or that there are no further SDLT consequences.
• The main question is whether the occupation after expiry is a continuation of the old lease, a periodic tenancy, or a new lease or other new transaction.
• Relevant facts include what the original lease said, whether any fresh agreement was made, and whether rent continued to be paid and accepted.
• The SDLT result depends on the legal character of the post-expiry occupation, not just the fact that the tenant remained in the property.
• Where the tax treatment matters, use current legislation and current HMRC guidance rather than relying on archived manual material.

Scroll down for the full analysis.

SDLT and lease terms: what “holding over” means

This page is about a narrow point in Stamp Duty Land Tax: what happens when a lease continues after its original fixed term has ended because the tenant remains in occupation. This is often called “holding over”. The archived HMRC material indicates that this was a recognised issue when working out the term of a lease for SDLT purposes.

What this rule is about

For SDLT, the term of a lease matters because tax on lease transactions depends in part on the length of the lease. In some cases, a lease does not simply stop on the last day of its fixed term. The tenant may stay on, and the law may treat the lease as continuing in some form.

The legal question is whether that continued occupation changes the lease term for SDLT purposes, and if so, when and how. “Holding over” is the label usually used for that situation.

What the official source says

The source provided is only a heading: “SDLTM14100 – Term of a lease: Holding over”, together with a notice that the page is archived and no longer relevant. It does not contain the substantive guidance itself.

So the only firm point that can be taken from the source is that HMRC previously treated “holding over” as part of its guidance on determining the term of a lease, but that specific page is no longer current.

What this means in practice

If a lease has ended its fixed term but the tenant remains in occupation, you should not assume that nothing has changed for SDLT purposes. Equally, you should not assume that the original lease simply carries on unchanged. The tax analysis depends on the legal basis on which the tenant remains.

In practice, the key issue is usually whether the continued occupation is treated as:

• a continuation of the existing lease,
• a periodic tenancy arising automatically or by agreement, or
• a new lease or other new land transaction.

That distinction can affect the term taken into account and may affect whether there is any further SDLT consequence after the original grant.

How to analyse it

Because the source text itself is not available, the sensible approach is to focus on the underlying legal facts.

• Identify the original lease term. Was it a fixed term lease, and what did the lease say about continuation after expiry?
• Check what happened when the fixed term ended. Did the tenant simply stay in occupation, or was there a fresh agreement?
• Establish the legal basis of occupation after expiry. For example, is there a statutory continuation, a periodic tenancy, or an express new lease?
• Look at whether rent continued to be paid and accepted, and on what terms. That may help show the nature of the post-expiry occupation, though it is not always decisive on its own.
• Ask whether the post-expiry arrangement creates a new chargeable land transaction or affects the lease term that should be recognised for SDLT purposes.
• Use current legislation and current HMRC guidance rather than relying on this archived page.

The important point is that “holding over” is not a complete answer by itself. It is a description of a situation. The SDLT result depends on the legal character of that situation.

Example

Illustration: A tenant has a five-year lease. At the end of the five years, no formal renewal is signed, but the tenant remains in the property and the landlord continues accepting monthly rent. The SDLT question is not answered simply by saying the tenant is “holding over”. You need to work out whether the law treats the occupation after expiry as a periodic tenancy, some other continuation of the old lease, or a new lease. That legal characterisation is what drives the SDLT analysis.

Why this can be difficult in practice

“Holding over” is fact-sensitive because the same everyday description can cover different legal outcomes. A tenant staying on after expiry might be there under statute, under an implied periodic tenancy, under a written extension, or under a wholly new agreement. Those situations may look similar commercially but differ legally.

This is also an area where archived manual material can be misleading if read in isolation. An archived HMRC page is not current guidance, and a manual is not the same as the legislation. If the detailed SDLT consequence matters, the current statutory position and any current guidance need to be checked carefully.

Key takeaways

• “Holding over” means a tenant remains after the fixed term ends, but that phrase does not by itself determine the SDLT result.
• The archived source confirms the topic existed in HMRC guidance, but it does not provide current substantive rules.
• For SDLT, the crucial issue is the legal basis of the continued occupation and whether it affects the lease term or creates a new land transaction.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: Archived Page: SDLTM14100 – Lease Holding Over Information

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