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HMRC internal manual

Stamp Duty Land Tax Manual

Chargeable Consideration: Surrender of a lease

Where a lease (or more than one lease) is granted in consideration of the surrender of one or more existing lease(s) (whether of the same or different premises) between the same parties, then:

  • the grant of the new lease does not count as chargeable consideration for the surrender and
  • the surrender does not count as chargeable consideration for the grant of the new lease.

under FA03/SCH17A/PARA16.

This applies even if other consideration is given for the surrender of the lease (such as a payment by the landlord to the tenant to procure the surrender which is itself chargeable to stamp duty land tax). However the release of any tenant’s obligation is not chargeable consideration in relation to the surrender of the lease. For further etails refer to SDLTM11060.

Where part only of the subject-matter of a lease is surrendered, this is treated as the surrender of a lease for the purposes of FA03/SCH17A/PARA16.