Removal of Multiple Dwellings Relief for SDLT
21st March 2024
On 6th March 2024, the abolition of the Stamp Duty Land Tax (SDLT) relief known as Multiple Dwellings Relief (MDR) was announced.
The Reasoning
HMRC’s tax reliefs evaluation programme has determined that MDR has not satisfied its original objectives. They have concluded that there have been numerous cases where the relief has been abused and it is no surprise why they are keen to abolish this costly relief.
Background
MDR was first introduced in 2011 to help boost investment into the private rented sector. It is a relief that applies to the SDLT charge where 2 or more dwellings are included within the same transaction (or linked transactions). The relief applies to residential property (dwellings), as the name suggests, and in some cases mixed use properties.
The relief is most commonly seen in action where a block of flats is being acquired or the incorporation of a property business is taking place. However, there are many other cases where it may apply and advice should be obtained.
Cut-off Date (1st June 2024)
Where contracts have been exchanged before 6th March 2024 the relief will apply regardless of when the completion takes place, however, this is conditional upon there being no amendment to the contract after 6th March 2024.
Where contracts are exchanged on or after 6th March 2024, completion must take place before 1st June 2024 in order for the relief to apply. Where completion takes place on or after 1st June 2024 MDR will not apply.
Get In Touch
For more information or advice on how the abolition of Multiple Dwellings Relief may affect you, contact your local Whitings office today.
Disclaimer - All information in this post was correct at time of writing.
