SDLT on successive linked leases: when leases count as one
Linked leases and SDLT
Where linked leases cover the same or substantially the same premises, SDLT can treat them as one combined lease.
- Check whether the leases form one arrangement.
- Add the lease terms and consider rent under every lease.
- The supplied HMRC page is archived and has no surviving example.
Scroll down for the full analysis.
Read the original guidance here:
SDLT on successive linked leases: when leases count as one
Linked leases covering the same space may count as one longer lease for stamp duty land tax. That can change the SDLT result.
It is not enough that one lease simply follows another.
What this rule is about
Parties sometimes grant leases in stages. For example, a tenant may first take space for a short term and later receive another lease of that space as part of the same arrangement.
Examine the arrangement as a whole. The law prevents parties from viewing linked arrangements in isolation.
What the official source says
HMRC has archived the supplied page. Its only surviving text says that SDLT stopped applying to Scottish land deals from April 2015, when LBTT took over there.
For England and Northern Ireland, the legislation behind its title sets this test.
- The leases must follow one another.
- They must cover the same, or almost the same, premises.
- The grants must be linked transactions.
- Where the same parties, or connected parties, enter into leases forming one scheme, arrangement or series, the transactions are linked.
What this means in practice
When all those points apply, the rules treat the leases as a single lease. Its start date is the date of the first lease.
For that single lease, SDLT combines all the lease terms, includes rent under every lease, and considers the full series rather than each grant in isolation. It creates one combined lease.
- Do not assess each lease separately without checking the wider arrangement.
- A later lease may affect SDLT on the earlier one.
- The later grant is otherwise ignored for this combined-lease rule.
- A further SDLT return may still be needed because of the later linked lease.
How to analyse it
Start with the documents rather than the labels used by the parties. What actually decides the answer?
Review the premises, the links between the deals, and the rent and term across the entire series of leases before reaching a conclusion. Labels do not decide it.
- List every lease and its grant date.
- Compare the plans and areas covered.
- Check whether the parties are the same or connected.
- Read the agreements and messages for one overall arrangement.
- Add the terms and identify rent under all the leases.
Example
Leah takes a shop for three years at £10,000 a year.
As part of the same arrangement, Leah later receives a two-year lease of the same shop at £12,000 a year after taking the first lease. SDLT combines them.
When the arrangement links the grants, SDLT treats them as one five-year lease and takes account of rent under both leases.
Why this can be difficult in practice
Even if the space changes slightly and the parties sign a new document, the rule may still apply where the grants remain part of the same arrangement. The facts matter.
People often get this part wrong.
- Whether premises are “substantially the same” requires a close look at the facts.
- Separate signing dates do not prevent leases being linked.
- Different group companies may still be connected parties.
Key takeaways
- Linked successive leases can count as one lease for SDLT.
- Check the whole arrangement, not each document alone.
- The archived HMRC page does not contain its original example.
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 108 — when land transactions count as linked
- FA 2003 section 81A — further returns after later linked transactions
- FA 2003 Schedule 17A para 5 — treating successive linked leases as one lease
Where this is not settled
- Whether premises are substantially the same can depend on the lease plans and the space actually covered.
- Whether leases form part of one scheme, arrangement or series is fact-sensitive.
- The source page does not provide its original example, so its intended facts cannot be reconstructed.
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.
- Copies of every lease and any agreement for lease
- Plans showing the premises covered by each lease
- The dates, terms and rent for each lease
- Documents showing the parties and their connections
- Emails or agreements showing how the leases were arranged
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 on successive linked leases: when leases count as one [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 108 - when land transactions count as linked https://www.legislation.gov.uk/ukpga/2003/14/section/108/2025-11-17 - FA 2003 section 81A - further returns after later linked transactions https://www.legislation.gov.uk/ukpga/2003/14/section/81A/2025-11-17 - FA 2003 Schedule 17A para 5 - treating successive linked leases as one lease https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/5/2025-11-17 HMRC's guidance page on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm19645 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 - Whether premises are substantially the same can depend on the lease plans and the space actually covered. - Whether leases form part of one scheme, arrangement or series is fact-sensitive. - The source page does not provide its original example, so its intended facts cannot be reconstructed. 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 on successive linked leases: when leases count as one
Search Land Tax Advice with Google
