Stamp Duty Rebate for Multiple Dwellings Relief

Property developers, investors and homebuyers in the UK may be entitled to a stamp duty rebate for multiple dwellings. Multiple Dwellings Relief (MDR), despite being an exemption for many years, is not thoroughly understood by solicitors or homebuyers. Nonetheless, Stamp Duty Rebate’s team of experts can help those seeking assistance with MDR and Stamp Duty Land Tax (SDLT). 

Discover what Multiple Dwellings Relief is with Stamp Duty Rebate, and whether or not you may be eligible for this specific stamp duty relief. 

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What Is Multiple Dwellings Relief? 

If you purchase several properties in one or several transactions, you may be entitled to a Multiple Dwellings Relief (MDR). This is applicable in several scenarios. For instance, if someone buys multiple properties in one transaction, transfers properties to a limited company or a developer purchases several apartments in one transaction. In such instances, these scenarios may qualify for tax relief, known as MDR. 

However, what exactly is a dwelling? This term is generally known as a building (whether that be a house or an apartment) that a single household resides in. While there is no set definition as to what a dwelling is, HMRC defines it in light of SDLT as a building appropriate for an everyday single dwelling. Likewise, a dwelling may also be a building that is still in the process of being constructed. 

To put a dwelling into context, the example of an uninhabitable property can be used. For instance, an uninhabitable property is one which is not fit for dwelling. In other words, this type of building is not fit for safe everyday living purposes for a single household. 

Therefore, MDR allows individuals or property developers to pay for stamp duty for the overall average value of the properties, rather than for the overall purchase price.

What Is a Linked Transaction?

A linked transaction simply means, according to stamp duty rules, multiple purchases are linked between the same buyer and seller. 

Multiple Dwellings Relief, henceforth, enables purchasers to reduce the overall stamp duty tax charged on the price of each dwelling. Find out more below to see how Multiple Dwellings Relief is calculated.

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Who Is Eligible for MDR?

It is important to note that anyone who applies for a relief they are not eligible for may face a penalty by HMRC. Therefore, it is imperative individuals are aware of the many rules surrounding stamp duty before applying for relief or a refund. Fortunately, Stamp Duty Rebate can help. With years of experience in claiming back people’s entitled money, we are in the best position to help those seeking MDR. 

Several types of properties may qualify for MDR:

  • Houses or apartments (flats) bought in one transaction 
  • Self-contained annexes 
  • Mixed-use properties (e.g. a shop with a flat above) 
  • Subsidiaries (e.g. an annexe or “granny flat”) 

Regardless, to qualify for MDR then two or more properties must be bought in the same transaction or within a series of linked transactions. Moreover, there are two types of Multiple Dwellings Relief to be aware of. Firstly, residential MDR will apply for 2-5 dwellings bought in bulk. Alternatively, if more than 6 properties are bought or mixed-used properties are purchased then non-residential SDLT rates may apply. SDLT non-residential rates are lower than residential rates.

How Is Multiple Dwellings Relief Calculated?

HMRC outline that individuals need to calculate the total amount paid for properties bought by the total number of dwellings. Following this, they need to work out the tax owed on this figure. Lastly, they will need to multiply this amount of stamp duty tax by the number of dwellings. 

It is important to note that the minimum rate of tax under MDR is 1% of the amount paid for overall dwellings. Furthermore, residential dwellings that qualify for MDR will also be subject to the additional 3% SDLT surcharge. This surcharge applies when an individual owns more than one property.

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Recent claims

How much can I expect to get back should my claim be valid and approved?

Every case is different. In some cases, we were able to arrange a rebate of up to 60% of the original SDLT paid. Some of the cases that we’ve successfully claimed refunds for:

Steven B Primary Residence
Rebate Received £9,337.00
Purchase price £1,100,000.00
Stamp Duty Paid £53,750.00
Gary H Primary Residence
Rebate Received £26,795.00
Purchase price £1,485,000.00
Stamp Duty Paid £89,750.00
Matt S Buy to Let
Rebate Received £8,817.35
Purchase price £274,000.00
Stamp Duty Paid £11,920.00
Ben G Primary Residence
Rebate Received £17,397.00
Purchase price £1,260,000.00
Stamp Duty Paid £69,750.00
Zev S Buy to Let
Rebate Received £13,044.95
Purchase price £410,000.00
Stamp Duty Paid £22,800.00
Ashkey P Buy to Let
Rebate Received £2,502.33
Purchase price £82,500.00
Stamp Duty Paid £2,475.00
Sophia L Primary Residence
Rebate Received £42,478.00
Purchase price £1,680,000.00
Stamp Duty Paid £115,350.00
Jonathan P Buy to Let
Rebate Received £2,340.51
Purchase price £77,500.00
Stamp Duty Paid £2,325.00

When Does Multiple Dwellings Relief Not Apply?

MDR does not apply to a freehold reversion or headlease where the lease has 21 years or more remaining. If such properties are purchased within a series of linked transactions, then the normal rates of SDLT will apply.

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How to Claim Multiple Dwellings Relief 

Claiming Multiple Dwellings Relief could result in saving thousands of pounds. To find out whether you may be entitled to relief or refund from HMRC, contact Stamp Duty Rebate today. Though individuals can claim a stamp duty rebate or exemption alone through HMRC, contacting an expert like Stamp Duty Rebate can ensure a fast and hassle-free process. Moreover, the rules surrounding stamp duty and MDR can often be complex – but, Stamp Duty Rebate makes this straightforward for clients. 

See our case studies to find out how we have helped many people across the UK access their owed money. Want to find out if you qualify for a Multiple Dwellings Relief or another stamp duty exemption, whether that be for a second home, unmortgageable property or even an uninhabitable property? Contact Stamp Duty Rebate today for an initial consultation.

Frequently asked questions

How long do I have to claim for Multiple Dwellings Relief?

Those purchasing several properties in one transaction should claim for MDR as soon as possible. However, MDR can be claimed up to 12 months following the original SDLT filing date.

How do I apply for Multiple Dwellings Relief?

The specific code “33” should be used in the SDLT1 claim.

Can I claim MDR if I am a company?

Yes, companies are entitled to claim MDR.