What is Multiple Dwellings Relief (SDLT) — abolished June 2024?

Full Definition

Multiple Dwellings Relief (MDR) was a Stamp Duty Land Tax relief available to buyers who acquired two or more residential dwellings in a single transaction or a series of linked transactions, such as an investor buying a small block of flats or a family buying a main house with a self-contained annexe. Rather than paying SDLT on the full aggregate purchase price at the standard bands, MDR allowed the buyer to divide the total price by the number of dwellings, calculate SDLT on that average price per dwelling, and then multiply the result by the number of dwellings -- typically producing a lower overall bill because more of the value was taxed at lower marginal bands, subject to a minimum effective rate of 1% of the total price. Following a government review that found the relief was being used in ways not originally intended, including claims involving granny annexes and gardens with limited genuine multiple-occupation value, MDR was abolished for transactions with an effective date (usually completion) on or after 1 June 2024, as announced at Spring Budget 2024. Transactions that exchanged contracts on or before 6 March 2024 generally remained eligible for MDR even if they completed after 1 June 2024, subject to transitional rules. Since abolition, buyers of multiple dwellings in one transaction must calculate SDLT on the full aggregate consideration using the standard residential rates and any applicable surcharges, which has increased costs for investors purchasing multiple units together. A separate relief, non-residential or mixed-use rates, may still reduce SDLT where a purchase includes both residential and substantial non-residential elements, but this operates independently of the abolished MDR regime.

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