Is Multiple Dwellings Relief still available under Welsh Land Transaction Tax in 2026/27?

Full answer

Multiple Dwellings Relief was withdrawn from Welsh Land Transaction Tax, mirroring the earlier abolition of the equivalent relief in England and Northern Ireland under SDLT. For LTT transactions completing in 2026/27, you cannot claim MDR, so there is no longer a mechanism to divide the consideration by the number of dwellings, work out tax on the average price, and multiply back up. LTT is instead charged on the whole purchase price using the relevant residential rate bands, and in most multiple-property purchases the higher residential rates (which include an additional-property surcharge) will apply because you are acquiring more than one dwelling. The Welsh Revenue Authority (WRA) administers LTT, and Wales — unlike England — has never offered first-time buyer relief, so that route is also unavailable to reduce the bill. There are still some structural reliefs that can apply: where six or more dwellings are bought in a single transaction, the purchase can be treated as non-residential, and the non-residential LTT rates may then apply, which can be more favourable than the higher residential rates on a large portfolio. Mixed-use transactions (residential plus genuinely commercial property) are also taxed at non-residential rates. Practically, this means a landlord or developer buying, say, three flats together now faces LTT on the aggregate price at higher residential rates rather than a reduced averaged figure, materially increasing upfront cost. Always check the live WRA rate bands and surcharge percentage before completion, as Welsh rates are set independently of England's SDLT. For comparison, England/NI use SDLT (0% to £125,000, then rising to 12% above £1.5m, with first-time buyer relief to £300,000), and Scotland uses LBTT with an 8% Additional Dwelling Supplement; each devolved system now operates without a multiple-dwellings averaging relief.

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