The Renters’ Rights Act 2025 – update on SDLT

Our guide to the Renters' Rights Act 2025 can be downloaded for free: The Renters' Rights Act 2025

Our webinar on the Renters' Rights Act 2025 can be watched here: Renters' Rights Act 2025 — what you need to know.   

Our hub bringing together all of our Renters' Rights Act 2025 material is here: The Renters’ Rights Act 2025 hub

The government has announced that it will make changes to the SDLT legislation to ensure that residential tenants are not dragged into SDLT liabilities or reporting obligations due to the new Renters’ Rights Act.

The issue

In February, we noted that the Renters’ Rights Act 2025 would bring more tenants into the SDLT net, as a seemingly unintended consequence of the legislation converting fixed-term tenancies into periodic tenancies. As a result, research suggested that over 150,000 tenants could become subject to SDLT reporting obligations within three years[1].

If you would like to read our earlier article explaining the issue, it is available here.

The initial response

At the time our previous article was written, it was not known whether this issue would be addressed, with the Ministry of Housing, Communities and Local Government commenting that:

“If any changes are needed to accommodate the new tenancy system within the SDLT regime, this will be announced at a fiscal event as normal.”

The solution 

The Exchequer Secretary to the Treasury has since confirmed (outside any fiscal event as previously suggested) that the purpose of the Renters’ Rights Act 2025 is to provide tenants with greater security and stability and, accordingly, there is no intention to bring tenants within the scope of the SDLT regime. 

The government has therefore confirmed that, through the Finance Bill 2026-27, it intends to legislate so that any lease treated as an assured tenancy under the Housing Act 1988, as amended by the Renters’ Rights Act 2025, will not be subject to an SDLT charge on the rent. The legislation will apply retrospectively from 1 May 2026 when tenancies were converted to assured tenancies. 

If you would like to read the government’s full statement, you can do so here.

Comment 

This is a welcome concession addressing what was an oversight in how the Renters’ Rights Act would impact tenants’ SDLT position. Tenants can be reassured that while the legislation for this change is yet to be published or implemented, HMRC will not seek to impose SDLT or require any SDLT returns to be filed for assured tenancies.

How Burges Salmon can help

If you would like further support in relation to the Renters’ Rights Act 2025 or SDLT more broadly, Burges Salmon has extensive experience advising landowners and can provide clear, practical advice on the impact these changes may have on your property portfolios as well as any other issues that arise from the Act.

This article was written by Ella Perrett, Trainee Solicitor in the Tax and Trusts team.