SDLTM09840 - SDLT - higher rates for additional dwellings: Interaction with multiple dwellings relief - MDR

路听听听听 Multiple dwellings relief (바카라 사이트淢DR바카라 사이트�) has been abolished for transactions which complete, or which substantially perform, on or after 1 June 2024.听

路听听听听 This guidance is only applicable to transactions with an effective date prior to 1 June 2024.听

Where two or more dwellings are purchased in a single or linked transaction multiple dwellings relief (FA2003/Schedule 6B) can be claimed. 听Where six or more dwellings are purchased in a single transaction, the purchaser can choose whether to apply the non-residential rates of SDLT or claim multiple dwellings relief and pay the higher rates (Section 116(7) FA 2003).听

In the examples below, the higher rates of SDLT used was 3%.The higher rates increased from 3%听to 5% on 31 October 2024.听

Example听

  • A company purchases a block of 10 flats for a total consideration of 拢1,000,000.听

  • Applying multiple dwellings relief the SDLT due would be 拢30,000.听 (Average consideration of 拢100,000 x 3% x 10).听

  • Applying the non-residential rates, the SDLT due would be 拢39,500. (拢150,000 x 0% plus 拢100,000 x 2% plus 拢750,000 x 5%)听

  • The purchaser can choose to apply the non-residential rates or make a claim for multiple dwellings relief.听

Example听

  • A company purchases a block of 10 flats for 拢3,000,000.听

  • Applying multiple dwellings听relief听the SDLT due would be 拢115,000, calculated as follows: 听听

Average purchase 拢300,000听

SDLT due听

3% on the first 拢250,000 =听

拢7,500听

8% on the final 拢50,000 =听听

拢4,000听

SDLT due per flat听

拢11,500听

Total SDLT due听

拢115,000听

  • Applying the non-residential rates the SDLT due would be 拢139,500. (拢150,000 x 0% plus 拢100,000 x 2% plus 拢2,750,000 x 5%).听

  • The purchaser can choose whether to apply the non-residential rates or make a claim for multiple dwellings relief.听