To conserve resources in training, the British and Australian Army converted many .303 rifles to .22 calibre for target practice and training purposes after the First World War. In 1926, the British government changed the nomenclature of its rifles, designating the .303 calibre SMLE as No. 1 Rifles and the .22 calibre training rifles as No. 2 Rifles. In Australia the SAF Lithgow manufactured many of these rifles from scratch.

The No2 MkIV*, 22 caliber training rifle was made to simulate the exact weight of it's big brother the No1 MkIII*. All outer appearances and mechanical operations were the same as for the .303 version, the exception being that as a .22 this rifle was a single shot. The magazine was merely a shell, which excluded the follower and spring; its purpose was to catch the extracted cases after firing.