SDLTM17120 Archived: Example 2 Moved to SDLT 17115

SDLT and payments called rent before a lease is granted

This archived HMRC page does not explain the SDLT treatment of payments made for a period before a lease is formally granted. Its only clear message is that HMRC has moved the example to SDLTM17115, so this page should not be relied on for the substantive rule.

• For SDLT on leases, it matters whether a payment is legally treated as rent, a premium, or other consideration.
• A payment made before the lease is granted may not be treated for SDLT in the same way as the label used by the parties suggests.
• The archived page contains no legal test or worked example; it is only a cross-reference to SDLTM17115.
• If you are reviewing an SDLT return, check the exact timing of the lease grant and what period the payment relates to.
• The tax analysis depends on the legal effect of the arrangement, not just invoices, side letters, or descriptions such as rent.
• HMRC manual guidance may help, but the legislation and the actual facts remain the starting point.

Scroll down for the full analysis.

SDLT and rent paid before a lease is granted: what this archived HMRC page means

This page concerns a narrow SDLT issue: whether a payment described as rent, but paid for a period before the formal grant of a lease, is treated as rent for SDLT purposes. The HMRC page provided is archived and does not contain the substantive example itself. Instead, it directs readers to SDLTM17115, where the example has been moved.

What this rule is about

SDLT on leases can depend not only on any premium paid, but also on the rent payable under the lease. That makes it important to identify what counts as rent, and for what period. A practical difficulty can arise where money is paid before the lease is formally granted, especially if the parties treat that payment as rent or as an amount referable to the period before completion.

The issue matters because SDLT does not simply follow whatever label the parties use. The legal character of the payment, and the timing of the lease grant, can affect whether the amount falls within the rent rules for SDLT.

What the official source says

The source page itself does not set out the rule or the example. It states only that the page is archived and that the example has been moved to SDLTM17115.

So the only reliable point that can be taken from this source alone is procedural: this is no longer the current location of HMRC’s example on rent payable for a period before grant.

What this means in practice

If you are researching this point, you should not rely on this archived page as containing the substantive guidance. You need to read the replacement material referred to by HMRC.

In practical terms, an archived cross-reference like this tells you that:

• HMRC has relocated the example rather than leaving the explanation on this page.
• The current manual position is intended to be found elsewhere.
• You should be cautious about citing this page on its own, because it contains no analysis.

For someone dealing with an SDLT return for a lease, the underlying question remains important: is a payment for the pre-grant period genuinely rent under the lease, or is it something else? But this source does not answer that question by itself.

How to analyse it

Based on this source, the sensible approach is limited but clear:

• First, identify whether the payment relates to a period before the lease was actually granted.
• Second, check the current HMRC manual page that replaced this archived example.
• Third, distinguish between the contractual label used by the parties and the legal effect of the arrangement.
• Fourth, consider the payment in the wider SDLT framework for leases, including whether it is being treated as rent, premium, or some other form of consideration.

This source does not provide the legal test. It only points you to where HMRC says the example now sits.

Example

Illustration: a tenant is allowed into occupation before the formal lease is completed, and pays an amount described by the parties as monthly rent for that earlier period. For SDLT purposes, the key issue would be whether that amount is treated as rent under the lease or as consideration of a different kind. This archived page does not resolve that point; it simply tells the reader to consult SDLTM17115 for HMRC’s example.

Why this can be difficult in practice

Pre-grant occupation arrangements are often commercially messy. Parties may agree heads of terms, allow early access, collect money, and only later complete the formal lease. In those cases, the tax analysis may depend on the exact legal arrangements and timing, not just on what the invoice or side letter says.

This is also an area where readers can easily overread HMRC manual material. A manual example may show HMRC’s view of a typical fact pattern, but the legislation remains the starting point. Because the source provided here contains no substantive content, it would be unsafe to draw any firm legal conclusion from it alone.

Key takeaways

• This archived HMRC page does not contain the actual example or rule.
• Its only substantive message is that the example has moved to SDLTM17115.
• For any real SDLT analysis of pre-grant rent, you need the replacement guidance and the underlying lease legislation.

This page was last updated on 24 March 2026

Useful article? You may find it helpful to read the original guidance here: SDLTM17120 Archived: Example 2 Moved to SDLT 17115

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