Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

Term of a lease: Leases for an indefinite term: Definition

For the purposes of stamp duty land tax (SDLT), a lease for an indefinite term is any lease where the term of the lease cannot be solely ascertained from the wording of the lease or some other ancillary document (such as an agreement for lease or a certificate of practical completion) at the date of grant of the lease. Examples of this in England are where the end date depends on notice being given or on operation of law.

For the tax treatment of leases for an indefinite term see SDLTM18718.

A lease for a fixed term with provision for it to continue thereafter is not a lease for an indefinite term. It is thought that a true periodic tenancy is not possible and in practice it is unknown.

The fact that notice to quit has to be given to terminate a lease does not mean that it is necessarily a lease for an indefinite term. If the term of the lease can be ascertained at the time of grant, it will be a fixed term lease on which any right of termination will be disregarded for SDLT purposes (see SDLTM18705).

Leases for life

For SDLT purposes, a lease for life is a lease for an indefinite term as the actual end date of the lease, and thus its term, cannot be ascertained at the time of grant.