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Multiple Dwellings Relief for SDLT

13 June 2024

It was announced as part of the Spring Budget 2023 that Multiple Dwellings Relief (MDR) was being abolished. This change has now come into effect for transactions which complete, or substantially perform on or after 1 June 2024.

The Spring Budget 2023 brought the announcement of the abolition of Multiple Dwellings Relief (MDR). As of now, this change affects transactions completing or substantially performing on or after 1 June 2024.

Property purchasers who bought more than one dwelling could previously apply MDR relief. This relief was applicable when a transaction or a series of linked transactions included freehold or leasehold interests in more than one dwelling. This relief was a significant tax benefit that could significantly lower the SDLT due. However, the government believed that MDR was no longer cost-effectively achieving its original objectives. As a result, they have abolished the relief.

For transactions before 1 June 2024, MDR is still claimable.

If you’re buying more than one dwelling and your transaction (or a series of linked transactions) includes freehold or leasehold interests in more than one dwelling, you can claim Multiple Dwellings Relief. This is applicable to transactions where:

  • the exchange of contracts occurred on or before 6 March 2024;
  • substantial performance of contracts happened before 1 June 2024; and
  • completion of contracts took place before 1 June 2024.

However, keep in mind that various exclusions apply to these transactions. It’s always a good idea to consult with a tax professional to understand these exclusions and how they might affect your specific situation. This way, you can make the most informed decision possible.

Source: HM Government Tue, 11 Jun 2024 00:00:00 +0100

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