Sale and leaseback stamp duty example: this HMRC page is archived
In short
The HMRC page supplied is archived. It contains no sale and leaseback example, but says that one was moved to SDLTM16040.
- Do not rely on the archive notice as a tax answer.
- The leaseback exemption has strict statutory conditions.
- The sale may still need separate SDLT analysis.
Scroll down for the full analysis.
Read the original guidance here:
Sale and leaseback stamp duty example: this HMRC page is archived
Sale and leaseback stamp duty example: this HMRC page is archived
No stamp duty example appears on this HMRC page. According to the notice, HMRC moved the example to SDLTM16040. That matters because an archived page cannot answer whether your own deal qualifies.
What this rule is about
A sale and leaseback happens when you sell a main interest in land, then the buyer leases it back to you. Relief can exempt the leaseback from SDLT. It does not automatically exempt the sale.
What the official source says
On the supplied HMRC page, you will find only an archive notice. It gives no facts, figures or worked answer. HMRC says it added its example to SDLTM16040.
- This page is not itself an example.
- It does not set out the conditions for relief.
- It points readers to SDLTM16040.
- HMRC manuals are guidance, not legislation.
What this means in practice
An archived notice does not prove that relief applies. Finance Act 2003 contains the legal test. Whether the leaseback meets every condition in section 57A is the key point.
- The sale must involve a major interest in land.
- The buyer must grant a lease back to the seller.
- The sale must be linked to the leaseback.
- Any other payment for the sale must be money or debt arrangements.
How to analyse it
Begin with the documents rather than the label used for the deal. A transaction called a sale and leaseback may still fail a statutory condition.
- Identify the interest sold and the lease granted back.
- Check what each side gave or promised.
- Check whether rights were transferred before completion.
- If both sides are companies, check whether they were in the same group.
Example
Arun sells a warehouse to an unconnected buyer, who grants him a lease of the warehouse as part of the same deal. If the sale is made partly because of that lease, and if the only other value is cash or debt arrangements, the leaseback may be exempt under section 57A. That sale needs separate SDLT analysis.
Why this can be difficult in practice
Real-world documents can contain far more than a simple sale and lease, with extra promises, a different completion structure, or a group-company link affecting the answer. Context matters.
- Calling a deal a sale and leaseback is not enough.
- The exemption covers the leaseback element only.
- The relocated HMRC example was not supplied here.
Key takeaways
- This HMRC page is an archive notice, not an example.
- Section 57A sets the legal conditions.
- Check the current law for later transactions.
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 57A — exemption for qualifying sale and leaseback arrangements
- FA 2003 section 117 — meaning of a major interest in land
- FA 2003 Schedule 7 para 1 — when companies count as members of one group
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
- Without the content of SDLTM16040, this page cannot confirm or explain HMRC’s relocated example.
- The statutory extract is current only to 17 November 2025. A transaction after that date needs a check of current legislation.
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 sale and lease documents
- Details of all money and debt arrangements
- Evidence of the relationship between the two companies, if both are companies
- Confirmation that there was no transfer of rights or pre-completion transaction
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 Sale and leaseback stamp duty example: this HMRC page is archived [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 57A - exemption for qualifying sale and leaseback arrangements https://www.legislation.gov.uk/ukpga/2003/14/section/57A/2025-11-17 - FA 2003 section 117 - meaning of a major interest in land https://www.legislation.gov.uk/ukpga/2003/14/section/117/2025-11-17 - FA 2003 Schedule 7 para 1 - when companies count as members of one group https://www.legislation.gov.uk/ukpga/2003/14/schedule/7/paragraph/1/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm16042 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 - Without the content of SDLTM16040, this page cannot confirm or explain HMRC's relocated example. - The statutory extract is current only to 17 November 2025. A transaction after that date needs a check of current legislation. 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: Sale and leaseback stamp duty example: this HMRC page is archived
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