Overview
- Analysts say the shift to open‑ended tenancies could bring SDLT liabilities for some renters because periodic leases require annual calculations once cumulative rent exceeds £125,000.
- Tax Policy Associates estimates about 150,000 households could face liability within three years, rising to roughly 250,000 by 2031.
- SDLT on leases is charged at 1% on the net present value of rent above the threshold, creating generally small bills but new yearly filing duties.
- An illustrative case shows eight sharers in London paying £1,000 each per month could incur about £573 after just over a year.
- The government says most tenants will never reach the threshold because lease renegotiations reset the clock, and any changes would be announced at a future Budget.