SDLT overlap relief: what Example 4 was meant to cover
SDLT overlap relief
Overlap relief may reduce the rent counted for SDLT where a qualifying new lease overlaps with an old lease.
- The reduction is limited to the overlap period.
- The old rent must have been counted for SDLT.
- The supplied HMRC page is archived and contains no Example 4 facts.
Scroll down for the full analysis.
Read the original guidance here:
SDLT overlap relief: what Example 4 was meant to cover
Overlap relief can cut the rent counted for stamp duty on a new lease. It matters where the new lease starts before the old one would have ended.
What this rule is about
To avoid counting the same period of rent twice is the aim. A new lease replacing an old one does not, by itself, make the relief available.
Instead, one of the routes in the law must apply. There must also be a real overlap.
What the official source says
The supplied HMRC page is archived. It says SDLT stopped applying to Scottish land deals from April 2015, but it does not include the text of Example 4.
Underlying relief is set out in the law:
- You give up an old lease and receive a new lease of the same, or almost the same, premises.
- A protected business tenant properly requests and receives a new tenancy.
- A subtenant receives a new lease after a head lease ends in specified circumstances.
- A guarantor receives a new lease under the guarantee.
What this means in practice
For the overlap period, reduce the rent under the new lease by the rent that would have been due under the old lease. That old rent must be rent used in the earlier SDLT calculation.
- Work out when the new lease began.
- Work out when the old lease would have ended.
- Compare the rent for that shared period.
How to analyse it
Ask the questions in order. Facts and documents decide the answer.
- Which statutory route is said to apply?
- Are the premises the same or substantially the same?
- What is the overlap period?
- What old rent was counted for SDLT?
Example
The archived page does not provide Example 4’s facts or figures. A safe illustration is this: if a qualifying new lease begins while the old lease would still have run, deduct the relevant old rent from the new rent for that shared period. That result cannot be less than zero.
Why this can be difficult in practice
People often focus only on the new lease. That is not enough. You also need the old lease, its expected end date and the earlier SDLT calculation.
- A replacement lease does not automatically qualify.
- Small changes to the premises may matter.
- The archived HMRC page cannot confirm what its Example 4 showed.
Key takeaways
- Overlap relief concerns rent on certain replacement leases.
- It only applies for the period both leases would cover.
- The supplied Example 4 page contains no example to verify.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- FA 2003 Schedule 17A para 9 — rent adjustment where old and new leases overlap
Official guidance
The pages below are HMRC’s guidance. Guidance is not law. It sets out how HMRC reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. HMRC can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- The supplied archive notice does not reproduce Example 4. Its facts, figures and intended calculation cannot therefore be confirmed from this source.
- The transaction date is unknown. The statutory text supplied is current only to 17 November 2025, so later-law verification is needed.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The old lease and new lease
- The dates each lease began and would have ended
- Evidence of the route by which the new lease was granted
- The rent counted when SDLT was worked out on the old lease
- The rent due under the new lease during the overlap period
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching UK Stamp Duty Land Tax (SDLT), which applies in England and Northern Ireland. MY QUESTION SDLT overlap relief: what Example 4 was meant to cover [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - FA 2003 Schedule 17A para 9 - rent adjustment where old and new leases overlap https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/9/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm19330 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from HMRC is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - The supplied archive notice does not reproduce Example 4. Its facts, figures and intended calculation cannot therefore be confirmed from this source. - The transaction date is unknown. The statutory text supplied is current only to 17 November 2025, so later-law verification is needed. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show Finance Act 2003 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 1 September 2026
Useful article? You may find it helpful to read the original guidance here: SDLT overlap relief: what Example 4 was meant to cover
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