There has been a welcome announcement which alleviates the original concerns around how the Renters Rights Act might give rise to unintended Stamp Duty Land Tax (SDLT) charges.
We previously reported that the Renters Rights Act could trigger possible SDLT charges. This was because the rules mean an assured shorthold tenancy will be treated as a continuing (‘growing’) lease, with the term effectively extending over time, potentially causing the SDLT threshold to be met when it wouldn’t have otherwise been (see below to read previous article).
However, on 22 April 2026 it was announced that the Government intends to ensure the necessary legislation is put in place so no one is newly brought into SDLT as a result of the changes.
The Government has said it intends to legislate in Finance Bill 2026-27, with the detail to be set out at or before the Budget. Importantly, the change is intended to have retrospective effect from the point at which the new tenancy regime applies, and HMRC has indicated that it will not seek to collect SDLT on the rent element of affected assured tenancies in the meantime.
Contact James Geary for more information by emailing james.geary@randall-payne.co.uk or call 01242 776000.