Measure
The government has confirmed that there will be SDLT relief for assured tenancies in England. This has come about as result of the introduction of the Renters’ Rights Act 2025. That Act replaced fixed-term assured shorthold tenancies with periodic assured tenancies. Under existing SDLT rules, this increased the likelihood that rent payable under an assured tenancy could exceed the threshold at which SDLT becomes payable on rent, because the net present value of rent can continue to accumulate within a single tenancy rather than resetting when a fixed-term tenancy is renewed.
To address this unintended consequence, the Government announced in a Written Ministerial Statement on 22 April 2026 that it would legislate so that assured tenancies do not give rise to SDLT on the rent element. High rent tenancies with an annual rent exceeding £100,000 fall outside the announced assured-tenancy relief. Any corporate, non-natural person tenants also fall outside the relief.
Individuals who hold assured tenancies within the meaning of the Housing Act 1988 and who would otherwise be required to pay SDLT on rent or file SDLT returns because of the interaction between SDLT lease provisions and the Renters’ Rights Act 2025.
This will be introduced in Finance Bill 2026-27 and will apply retrospectively from 1 May 2026.
This measure will impact on tenants with assured tenancies by making sure that they are not brought into SDLT, or required to file SDLT returns, solely as a consequence of the tenancy reforms introduced by the Renters’ Rights Act 2025.