When linked leases count as one lease for stamp duty
Linked leases at a glance
Successive leases can count as one lease for SDLT where they cover substantially the same premises and form part of one linked arrangement.
- The terms and rent are combined
- The first lease sets the start date
- A later lease can change SDLT paperwork
Scroll down for the full analysis.
Read the original guidance here:
When linked leases count as one lease for stamp duty
If you take a new lease after an earlier, linked lease of much the same space, stamp duty may treat both leases as one longer lease. That matters because it combines the length and rent of both leases when working out the tax.
What this rule is about
Splitting an occupation into successive leases does not always keep each lease separate for SDLT. The law looks at the real arrangement. Where leases are linked, the law joins them together for this purpose.
That result can alter the tax due on rent. It can also alter the paperwork following the later lease.
What the official source says
HMRC has archived the page supplied here. It gives no linked-lease example or calculation. Its only substantive note says that, from April 2015, Scottish land deals moved from SDLT to LBTT.
The legislation gives the underlying rule. It applies where:
- there are successive leases, granted at once or at different times
- they cover the same, or substantially the same, premises
- the grants form a single scheme, arrangement or series between the relevant parties or connected parties
What this means in practice
In that situation, SDLT treats the leases as a single lease. The single lease starts when the first lease starts. Its term is the combined length of every lease, and its rent is the rent under all of them.
- Do not assess each lease in isolation.
- Keep the first lease and later lease documents together.
- Check whether the later lease changes the return position.
How to analyse it
Start with the facts, not the label on the documents. A new lease is not automatically linked merely because it follows an old one.
- Compare the premises covered by each lease.
- Map the parties and any connection between them.
- Read the agreements and negotiations for one planned series.
Example
Illustration: Maya takes a three-year lease of a unit at £20,000 a year. A linked two-year lease of substantially the same unit follows. The rule treats this as one five-year lease, using rent of £100,000 across both leases, rather than two separate leases.
Why this can be difficult in practice
“Substantially the same” premises and a “single scheme” need a close look at the evidence. Small changes to the space, timing or parties may matter. The archived HMRC page supplies no example to resolve those borderline facts.
- A later lease is not always part of one plan.
- Different legal names may still identify connected parties.
- A later grant can still require further SDLT paperwork.
Key takeaways
- The rules can combine linked successive leases.
- The combined term and rent drive the SDLT result.
- Scotland has used LBTT, not SDLT, since April 2015.
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 transactions form a single scheme or series
- FA 2003 Schedule 17A para 5 — successive linked leases treated as a single lease
- FA 2003 section 81A — returns after a later linked transaction changes tax
Where this is not settled
- Whether premises are substantially the same, and whether leases form one scheme or series, depends on the evidence.
- The archived HMRC page does not explain how HMRC would apply the test to borderline facts.
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.
- All lease documents, plans and variations
- Details of the parties and any connections between them
- Negotiations, agreements and timing that may show a planned series
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 When linked leases count as one lease for stamp duty [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 transactions form a single scheme or series https://www.legislation.gov.uk/ukpga/2003/14/section/108/2025-11-17 - FA 2003 Schedule 17A para 5 - successive linked leases treated as a single lease https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/5/2025-11-17 - FA 2003 section 81A - returns after a later linked transaction changes tax https://www.legislation.gov.uk/ukpga/2003/14/section/81A/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/sdltm19655 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, and whether leases form one scheme or series, depends on the evidence. - The archived HMRC page does not explain how HMRC would apply the test to borderline facts. 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: When linked leases count as one lease for stamp duty
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