SDLTM18745 - Term of a lease: Lease extensions and variations, continuing by tacit relocation etc.

These paragraphs aim to explain the treatment of the usual methods of extending and varying the term of occupation under a lease. The paragraphs SDLTM18748 - SDLTM18770 refer to commercial leases but the principles are also applicable to residential leases (although in practice very few residential leases will incur a charge to stamp duty land tax (SDLT) on the rental element).

The SDLT treatment of these variations will differ, depending upon whether the initial lease when granted was chargeable to stamp duty or SDLT and also whether the variation was in the first five years of the lease.