The government has promised to change stamp duty rules so landlords and tenants are not caught by an unintended tax charge when assured shorthold tenancies switch into the new assured tenancy system on 1 May. The move matters because, without a fix, the way rent is valued for Stamp Duty Land Tax (SDLT) on continuing leases could have pushed some long-running tenancies above the tax threshold.
Why the SDLT issue matters for landlords
Under current SDLT rules, some leases can trigger tax on the rent element once the net present value of rent passes a threshold. The concern raised this week was that periodic assured tenancies under the Renters Rights Act could be treated as continuing indefinitely for SDLT purposes, creating a tax result that was never intended for ordinary private rented sector lets.
For landlords, the real risk was not just a modest tax bill for some tenants. It was the legal and administrative fallout if a mainstream tenancy model suddenly created a fresh SDLT question in parts of the market with higher rents, especially in London. That would have added another layer of confusion at exactly the point the sector is trying to adapt to a major regulatory overhaul.
This follows Landlord Knowledge’s report on the government’s Renters’ Rights Act information sheet, which highlighted how much of the reform detail is still being absorbed by landlords ahead of the 1 May start date. The latest intervention suggests ministers are still having to iron out technical consequences close to implementation.
Government says legislation will override the problem
According to the government’s position, legislation in the Finance Bill 2026-27 will ensure residential leases that fall within the assured tenancy framework do not create an SDLT charge on the rent element simply because of the legal change. Until that overriding legislation takes effect, HMRC has said it will not collect SDLT on that rent element from the date existing tenancies become section 4A assured.
That should remove the immediate compliance risk for landlords. A tax quirk affecting tenant rent payments might not sound like a landlord story at first glance, but it could have affected tenancy paperwork, advice given by agents, and the willingness of some investors to keep higher-value properties in the sector. In short, it was the kind of technical mistake that can become a practical headache very quickly.
It also sits alongside broader tax pressure already hitting investors. Landlord Knowledge recently covered how stamp duty is already squeezing investor margins, so the last thing landlords needed was another lease-related surprise layered on top.
Landlords should still keep an eye on the detail when the Finance Bill wording is published. The government’s assurance removes the immediate threat, but tax law problems are rarely solved properly until the exact drafting is available and tested in practice. For portfolio landlords with premium rentals, this is one of those issues worth flagging to advisers early rather than assuming the headline alone settles it.
For now, the important point is that ministers have recognised the problem before 1 May. That is better than letting it run into the new regime and leaving agents, accountants and landlords to work it out after the event.
More detail on the current SDLT framework remains available on the official GOV.UK Stamp Duty Land Tax guidance.
What this means for landlords
- If you let higher-rent property: this removes the risk of tenants or advisers raising unexpected SDLT questions purely because fixed terms disappear.
- Watch for: the detailed Finance Bill wording later this year, especially if you hold London or premium-stock rentals.
- Bottom line: the government has moved to stop a technical tax trap before it turns into a real market problem.
Editor’s view
This is the kind of last-minute repair that should have been spotted earlier. Still, ministers deserve some credit for fixing it before landlords and tenants were left arguing over a tax charge nobody thought the Renters Rights Act was creating.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 24 April 2026
Sources: GOV.UK, HMRC, Tax Policy Associates
Related reading: Stamp duty receipts jump 11 percent to £995m as landlords absorb higher rates
📘 Renters’ Rights Act: Complete Landlord Guide
Everything you need to know about the new rules – 1 May 2026
