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HMRC internal manual

Stamp Duty Land Tax Manual

Term of a lease: Break and irritancy clauses and options to renew

Break and irritancy clauses in a lease are ignored for stamp duty land tax (SDLT) purposes and do not reduce the contractual term specified in the lease (see FA03/SCH17A/PARA2(a)). In circumstances where a break notice or irritancy notice is withdrawn, by agreement between the parties, before it takes effect the lease will be treated as continuing for SDLT purposes..

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 (see FA03/SCH17A/PARA2(b)) .

See SDLTM18740 for the SDLT treatment of subsequent renewals.