Term of a lease: Break and forfeiture clauses and options to renew
Break and forfeiture clauses in a lease are ignored for SDLT purposes and do not reduce the contractual term specified in the lease (refer to FA03/SCH17A/PARA2(a)).
Moving out before the term of the lease, or deemed lease, has expired will not create entitlement to a refund of the SDLT paid on the transaction.
Similarly, options to renew a lease are ignored for SDLT purposes and the initial charge to SDLT is based on the contractual term stated in the lease (refer toFA03/SCH17A/PARA2(b)).
Refer to SDLTM14090 for the SDLT treatment of subsequent renewals.