SDLT overlap relief: why this stamp duty example is archived
Archived HMRC overlap example
The supplied HMRC page contains no example. It says Scottish land transactions moved away from SDLT from April 2015.
- The SDLT overlap rule concerns qualifying replacement leases.
- It can reduce rent counted during an overlap period.
- The missing example cannot be reconstructed from this page.
Scroll down for the full analysis.
Read the original guidance here:
SDLT overlap relief: why this stamp duty example is archived
SDLT overlap relief: why this stamp duty example is archived
This HMRC page gives no overlap relief example because its notice says that stamp duty land tax, or SDLT, stopped applying to Scottish land transactions from April 2015. It is archived.
What this rule is about
Overlap relief can matter when an old lease ends and a new lease starts before the old term would otherwise have finished, creating a shared period between them. The law may reduce the rent counted for SDLT.
This is a lease-rent rule. It is not a general discount for having two agreements running at once.
What the official source says
HMRC’s supplied page says only that it is archived and that Scottish transactions moved to LBTT from April 2015. It does not reproduce its former Example 1.
For England and Northern Ireland, the legislation sets out the overlap calculation when you surrender an old lease for a replacement, a protected tenant receives one, a sub-tenant replaces a lease, or a guarantor does so. Four situations follow:
- You surrender an old lease for a new lease of the same, or almost the same, premises.
- A protected business tenant requests and receives a new lease.
- A sub-tenant receives a replacement lease after the head lease ends.
- A guarantor receives a replacement lease under the guarantee.
What this means in practice
During the overlap period, the law reduces the new rent by the old rent already counted for SDLT, but only as far as the overlap calculation allows. It cannot produce negative rent.
- Check whether the premises are the same or substantially the same.
- Work out when the new lease began.
- Check when the old lease would have ended.
How to analyse it
Start with the documents, not the label “overlap relief”, because the reason for the replacement lease determines whether the rule can apply. The label alone proves nothing.
- Identify which qualifying situation applies.
- Find the period when the two lease terms overlap.
- Compare the new rent with the old rent used in the earlier SDLT calculation.
Example
For illustration, an old lease rent of £1,200 overlaps with a new lease rent of £1,800 for one month, and, if the statutory conditions apply, the rent counted for the new lease reduces to £600. It cannot fall below nil.
Why this can be difficult in practice
People often focus only on the dates, but they must also show that the replacement lease fits one of the statutory situations before they can rely on the overlap rule. Dates are not enough.
- A new lease for different premises may not qualify.
- The old rent must be the amount used in its SDLT calculation.
- This archived HMRC page cannot confirm the facts of its missing example.
Key takeaways
- This HMRC page is an archive notice, not a worked example.
- Scottish transactions need the relevant LBTT rules.
- For SDLT, the overlap rule depends on the lease facts.
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 Schedule 17A para 9 — calculating rent when old and new leases overlap
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 archived page does not say which Scottish transactions, if any, remained within SDLT during transitional arrangements.
- The supplied material does not reproduce the former example, so its facts and result cannot be verified from this page.
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 old lease and its scheduled end date
- the new lease and its grant date
- the rent used for the old lease SDLT calculation
- documents showing why the old lease ended or was surrendered
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 SDLT overlap relief: why this stamp duty example 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 Schedule 17A para 9 - calculating rent when old and new leases overlap https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/9/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm19315 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. HMRC guidance is HMRC's 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 archived page does not say which Scottish transactions, if any, remained within SDLT during transitional arrangements. - The supplied material does not reproduce the former example, so its facts and result cannot be verified from this page. 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: SDLT overlap relief: why this stamp duty example is archived
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