Read the original guidance here:
HMRC SDLT: SDLTM29910 – Relief for transfers involving multiple dwellings: Availability of relief

Guidance on Multiple Dwellings Relief for Stamp Duty Land Tax

The Multiple Dwellings Relief for Stamp Duty Land Tax (SDLT) allows relief when you buy at least two dwellings. This information outlines the key principles and conditions for claiming the relief.

What is Multiple Dwellings Relief?

Multiple Dwellings Relief applies when the main purpose of a transaction involves the purchase of at least two dwellings. You can purchase these dwellings either in a single transaction or through linked transactions (where two or more transactions are connected to one another).

Importantly, if you buy other property types along with these dwellings, it will not affect your ability to claim this relief.

Example of Claiming Relief

• If you buy two flats in one go, you may qualify for this relief.
• If you buy two houses in separate transactions that are linked (for example, through a single agreement), you can also claim this relief.

Key Conditions for Claiming Relief

According to the legislation (specifically FA03 S58D and SCH6B), several conditions must be met to be eligible for Multiple Dwellings Relief. Below are the main points to consider:

• The transaction must involve at least two dwellings.
• Buying other types of property alongside the dwellings does not disqualify you.

When is Relief Not Available?

There are specific circumstances when you cannot claim Multiple Dwellings Relief. These include:

• If tenants collectively exercise their rights to buy flats.
• If certain community rights (related to crofting) to purchase are in effect.
• If the dwelling falls under the higher threshold category, meaning the 15% SDLT rate while purchasing by non-natural persons applies. Non-natural persons can be companies or partnerships.
• If SDLT group relief, reconstruction relief, or acquisition relief has already been claimed or withdrawn.
• If charitable relief has been claimed or withdrawn.

Additional Restrictions

Relief is also generally unavailable if the dwelling is under a long lease, unless certain exceptions apply.

Understanding “Dwelling” in This Context

The term ‘dwelling’ is important when it comes to claiming Multiple Dwellings Relief. You can learn the exact definition and its implications by visiting SDLTM29955.

Special Transition Rules

As of 1 June 2024, some changes will occur regarding the transactions eligible for this relief. Specifically, the Multiple Dwellings Relief will be abolished for certain transactions. However, special transitional rules will apply, which you can read more about at SDLTM29902+.

Linked Transactions

If you are conducting linked transactions, additional rules will apply. Details can be found in the guidance at SDLTM29903.

Examples Illustrating the Rules

Example 1: Two Dwellings in One Purchase

If you purchase two properties, say two flats, in one go, you can claim Multiple Dwellings Relief if all other conditions are satisfied. This includes the condition that neither property is subject to a long lease unless explicitly exempt.

Example 2: Separate Linked Transactions

Consider the case where you enter into two separate but connected transactions for two houses. As long as they are linked (like if they are part of the same agreement), you are still eligible to claim the relief.

Exceptions and Special Cases

Make sure to read about specific exceptions and special cases where the relief may not apply. For instance, when tenants exercise their collective rights, you will not be able to claim the relief.

Final Thoughts on the Subject

Understanding the details surrounding Multiple Dwellings Relief is crucial when planning property purchases involving multiple dwellings. Knowing when you can or cannot claim the relief will help you navigate your property transactions more smoothly. Make use of the resources provided for further clarification as needed.