If you’re purchasing multiple dwellings in a single transaction or linked transactions in England or Northern Ireland, you may be eligible for Multiple Dwellings Relief (MDR). This relief can significantly reduce the amount of Stamp Duty Land Tax (SDLT) you owe, potentially saving you thousands of pounds.

What is Multiple Dwellings Relief?

Multiple Dwellings Relief is a tax relief designed to benefit individuals and entities purchasing more than one residential property in a single or linked transaction. Instead of calculating SDLT based on the total purchase price, MDR allows the tax to be calculated using the average price of the dwellings. This often results in a lower overall SDLT charge, especially when buying multiple lower-priced properties.

How to Qualify for Multiple Dwellings Relief

To be eligible for MDR, you must be purchasing more than one dwelling in a single transaction or linked transactions. The properties must be separate dwellings, such as flats or houses. Certain types of property, like annexes, may also qualify if they meet specific criteria, such as having their own facilities and separate entrances.

Calculating SDLT with Multiple Dwellings Relief

When claiming MDR, you first divide the total purchase price by the number of dwellings to determine the average price per dwelling. Then, calculate the SDLT due on this average price using the standard residential rates. Finally, multiply the resulting tax by the number of dwellings to arrive at your total SDLT liability. Keep in mind that the minimum SDLT payable under MDR is 1% of the total purchase price.

Other Considerations for Multiple Dwellings Relief

• Commercial entities can also claim MDR, although the minimum SDLT rate is typically 3% of the total consideration.
• Property investors purchasing multiple dwellings can benefit from MDR, regardless of their trading or investment status.
• The time limit for claiming MDR is usually 12 months from the filing date of the SDLT return, but in some cases, it may be possible to go back up to 4 years.
• If a property is converted into multiple dwellings after purchase, MDR can only be claimed if the conversion was already underway at the time of purchase.

Ensure You Don’t Overpay on SDLT – Check Your Eligibility for Multiple Dwellings Relief

Many property buyers are unaware of the potential savings offered by Multiple Dwellings Relief and end up paying more Stamp Duty Land Tax than necessary. If you’ve purchased multiple dwellings in the past or are planning to do so in the future, it’s essential to check your eligibility for MDR.

At Claim SDLT, our expert solicitors specialise in helping clients claim the MDR they’re entitled to. We’ll guide you through the entire process, from determining your eligibility to preparing and submitting your claim. Our No Win, No Fee service means you only pay if your claim is successful, ensuring you have nothing to lose and potentially thousands to gain.

Don’t let unclaimed Multiple Dwellings Relief go to waste. Contact Claim SDLT today to discuss your case with our knowledgeable team and take the first step toward securing your SDLT refund.