Lease rent that includes services: the stamp duty point
In short
The archived HMRC page does not contain Example 1. For lease stamp duty, the key issue is whether a payment is rent or a separate service obligation.
- Read the lease wording.
- Keep a clear cost breakdown.
- Check current law for later leases.
Scroll down for the full analysis.
Read the original guidance here:
Lease rent that includes services: the stamp duty point
The supplied HMRC page no longer provides its Example 1 and states only that the example moved elsewhere. Even so, the stamp duty point remains important.
Rent and separate service costs can receive different treatment on a lease.
What this rule is about
Whether you pay a single monthly sum or rent alongside separate bills for services, the payment structure described in the lease can affect the stamp duty calculation. The lease wording matters more than an invoice heading.
What the official source says
Although HMRC’s archived page gives no facts, figures or conclusion from which HMRC’s example could be recreated, it says only: “example 1 moved to SDLT11015”. That does not explain the example.
Do not recreate it from this page alone.
- The page is archived.
- It directs readers to another HMRC manual page.
- The supplied page gives no substantive rule.
What this means in practice
Legislation is the starting point. Tax can apply where an amount paid for a lease includes rent.
However, where an amount paid for a lease includes rent, the legislation excludes a tenant’s promise to pay for services, repairs, insurance or management costs from that amount. The distinction matters.
- Read the lease, not just the payment schedule.
- Separate rent from service costs where the documents do so.
- Keep the cost breakdown with the lease papers.
How to analyse it
Start by asking what each payment is actually for, because a label alone may not settle the point where the lease, side letters or later documents provide further detail. Check the lease as a whole.
- Identify each sum you must pay.
- Check whether it is described as rent.
- Check whether it pays for a service or landlord cost.
- Look for side letters or later changes.
Example
Sam’s lease requires £1,000 each month, described as rent inclusive of cleaning.
Another lease instead states £850 rent and £150 for cleaning.
For these facts, the supplied archived page does not explain how HMRC analysed them. Check the lease wording and the real payment obligation against the legislation.
Why this can be difficult in practice
Even where the documents show one monthly figure, a single combined payment can conceal rent, services, repairs, insurance or management costs within that sum. This can make the position less clear.
Its heading may suggest a straightforward answer. That can mislead you.
You may assume that the rules treat every pound called rent in the same way, even when the payment also covers services or other landlord costs. The statutory exclusion for service obligations shows why that assumption can be unsafe.
- A combined monthly figure may not explain its parts.
- A service charge may change during the lease.
- Later documents may alter the original arrangement.
Key takeaways
- The supplied HMRC page contains no usable example.
- Rent and service obligations can have different treatment.
- The lease terms and payment breakdown are central.
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 5 para 1 — when the rent rules apply to a lease
- FA 2003 Schedule 5 para 2 — how tax applies to rent in a lease
- FA 2003 Schedule 17A para 10 — tenant obligations excluded from the amount paid
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 material does not state the facts or conclusion of HMRC’s moved Example 1.
- The supplied legislation is current only to 17 November 2025. A lease with a later effective date needs a current-law check.
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 signed lease and any side letters
- A breakdown of rent, service charges and management costs
- The lease start date and any later variation
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 Lease rent that includes services: the stamp duty point [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 5 para 1 - when the rent rules apply to a lease https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/1/2025-11-17 - FA 2003 Schedule 5 para 2 - how tax applies to rent in a lease https://www.legislation.gov.uk/ukpga/2003/14/schedule/5/paragraph/2/2025-11-17 - FA 2003 Schedule 17A para 10 - tenant obligations excluded from the amount paid https://www.legislation.gov.uk/ukpga/2003/14/schedule/17A/paragraph/10/2025-11-17 Guidance page from HMRC on this topic (guidance, not law): https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm11020 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 material does not state the facts or conclusion of HMRC's moved Example 1. - The supplied legislation is current only to 17 November 2025. A lease with a later effective date needs a current-law check. 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: Lease rent that includes services: the stamp duty point
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