SDLTM14050 | Term of a lease: Leases for an indefinite term: Initial treatment

All leases for an indefinite term are treated initially for the purposes of SDLT as being for a fixed term of one year, under the provisions of FA03/SCH17A/PARA4(1)(a). This is regardless of any other statutory provision treating the lease as being for any other term.

Therefore notification of such a lease will only be required initially if there is SDLT to pay on either or both of the rent and other consideration – for details refer to SDLTM12010. Where a lease for an indefinite term continues beyond the initial notional one-year term, refer to SDLTM14070 for the SDLT treatment.