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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Introduction: Definitions: Notional leases

Various parts of the legislation treat an event as if a lease has been granted for the purposes of stamp duty land tax. In deciding whether this notional lease is for a fixed or indefinite term, the considerations discussed at SDLTM18705 and SDLTM18710 should be taken into account, bearing in mind that no actual lease has been granted.

Notional leases are treated as granted under:

FA03/SCH17A/PARA5 - Successive linked leases (see SDLTM19635)

FA03/SCH17A/PARA11 - Assignations treated as new leases (see SDLTM19660)

FA03/SCH17A/PARA19(3) - Substantial performance of agreements for lease or missives of let (see SDLTM10040)

FA03/SCH17A/PARA13 - Variation of leases so as to increase rent (see SDLTM19010)

FA03/SCH17A/PARA14 - Abnormal rent increases after fifth year (see SDLTM18620)

The extension of a lease in Scotland is treated for SDLT purposes as if it were the grant of a new lease.