Multiple dwellings relief (MDR) reduces the amount of SDLT payable on the acquisition of two or more dwellings in a single transaction or in a series of linked transactions. Relief is given by calculating SDLT on the average price payable for the dwellings, multiplied by the number of dwellings. Relief may be clawed back if there is an ‘event’ within three years of the acquisition. Similar rules apply in Scotland and Wales for LBTT and LTT purposes (but no clawback within LTT). HMRC provides guidance on what constitutes a separate dwelling, and it has won all the recent cases on this point in the tax tribunal to date.
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Multiple dwellings relief (MDR) reduces the amount of SDLT payable on the acquisition of two or more dwellings in a single transaction or in a series of linked transactions. Relief is given by calculating SDLT on the average price payable for the dwellings, multiplied by the number of dwellings. Relief may be clawed back if there is an ‘event’ within three years of the acquisition. Similar rules apply in Scotland and Wales for LBTT and LTT purposes (but no clawback within LTT). HMRC provides guidance on what constitutes a separate dwelling, and it has won all the recent cases on this point in the tax tribunal to date.
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