Multiple Dwellings Relief For SDLT



Multiple Dwellings Relief For SDLT


Multiple Dwellings Relief For SDLT

Multiple Dwellings Relief (MDR) offers significant savings on the stamp duty payable for transactions that include multiple residential dwellings under one transaction. But it only applies to some transactions and doesn’t cover all circumstances. This article aims to provide a helpful guide as to when you are and aren’t entitled to MDR.



What is Multiple Dwellings Relief ?

MDR, or Multiple Dwellings Relief (MDR) is a tax relief from Stamp Duty Land Tax (SDLT) that applies to some purchases of additional residential properties in England, Wales and Northern Ireland.

The relief works by reducing the amount of SDLT due on residential property transactions that involve more than one dwelling in one transaction.

MDR calculates the average value of the properties and applies the SDLT rates to that figure, instead of the total purchase price.


How is a dwelling defined for SDLT?

For the purpose of SDLT, A dwelling is defined as any building, or part of a building, which has been designed or adapted for use as a separate residence and includes any garden or grounds attached to it. The definition includes flats, bedsits and self-contained flats which are not part of any other dwelling.

The Finance Act 2003 Schedule 6B gives this definition: ‘A building or part of a building counts as a dwelling if—

  • (a) it is used or suitable for use as a single dwelling,
  • (b) it is in the process of being constructed or adapted for such use.’

For full clarification please refer to the HMRC SDLT guide here.

What qualifies?

You will qualify for MDR if any of the following apply:

  • You are purchasing a residential property with an annexe, granny flat, separate wing, staff quarters or any other subsidiary dwelling;
  • You are purchasing more than one residential property in a series of linked transactions from the same vendor;
  • You are acquiring a freehold inclusive of 2+ residential units;
  • You are acquiring an existing building with permitted development rights to convert into multiple residential units;


The calculation of the SDLT rates on multiple dwelling purchases, and what constitutes a ‘single dwelling’, are complex and best handled by an experienced team. We regularly assist clients with MDR claims on both a pre and post-completion basis. If you’re about to, or have purchased a residential property, and would like to know more about how you could benefit, please get in contact and we can review the transaction to ensure the correct level of SDLT is paid.



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1 in 4 SDLT transactions are calculated incorrectly. We assist in reviewing both upcoming and historical property transactions. Call or email the team to find out more.  Contact Us