Can Multiple Dwellings Relief apply to two flats bought in linked transactions with different effective dates in Scotland?

Introduction

Buyers often ask whether Land and Buildings Transaction Tax (LBTT) Multiple Dwellings Relief (MDR) can still apply where two dwellings are bought as part of one overall deal, but the transactions complete on different dates. This issue commonly arises where there is one negotiated price, one seller and two separate properties, but the conveyancing timetable is not identical for both purchases.

The key question is usually whether the purchases are “linked transactions” for LBTT purposes and, if they are, whether MDR can still be claimed. In Scotland, the legislation expressly connects the linked transaction rules with MDR, so different effective dates do not automatically prevent relief.

The Question

Two buyers are purchasing two flats from the same seller. There was a single offer and acceptance covering both properties for one combined price. The flats are in separate buildings but on the same street. Their solicitor has suggested that MDR may not apply because the transactions have different effective dates. The buyers want to know whether, in principle, the purchases can still qualify for MDR.

Nick’s Explanation

Nick’s view was that, on the facts provided, the purchases were clearly capable of being treated as linked transactions under the Land and Buildings Transaction Tax (Scotland) Act 2013.

He explained that section 26(1) applies where a chargeable transaction is one of a number of linked transactions, and section 26(2) requires the total chargeable consideration for all linked transactions to be taken into account.

He also pointed out that section 26(4)(a) expressly states that the linked transaction rules are subject to Schedule 5, which is the schedule dealing with Multiple Dwellings Relief.

In anonymised form, his reasoning was:

“Schedule 5 enables relief where more than one dwelling is purchased in a single or linked transaction. This includes situations where the purchases occur on different dates but are part of a single arrangement. Provided the conditions of Schedule 5 are met, MDR can be claimed.”

He therefore concluded that, where multiple dwellings are being acquired through linked transactions, different effective dates do not by themselves stop MDR from being available.

The Law

The main legal provisions are found in the Land and Buildings Transaction Tax (Scotland) Act 2013.

Section 26 deals with linked transactions. In broad terms, if there is more than one transaction and they are linked, LBTT is calculated by reference to the total consideration for all of them, using the statutory method in section 26.

Section 26(4)(a) is important because it says that section 26 is subject to Schedule 5, which provides for Multiple Dwellings Relief.

Schedule 5 gives relief where a buyer acquires an interest in more than one dwelling in a single transaction or in linked transactions. Broadly, the legislation works by allowing tax to be calculated by reference to the mean consideration per dwelling, subject to the detailed rules and any minimum tax charge that may apply under the legislation in force at the time.

This means the legal structure is not:

• first decide the transactions are linked, then deny MDR because they are not simultaneous;

but rather:

• identify whether the transactions are linked, and then apply the MDR rules in Schedule 5 if the statutory conditions are met.

Nothing in the facts described suggests that different effective dates alone would disqualify the claim.

Analysis

Step 1 is to identify whether there are multiple dwellings. On the facts given, there are two flats, so that requirement appears to be met.

Step 2 is to consider whether the acquisitions are linked transactions. The facts strongly point that way:

• the same buyers are acquiring both properties;
• the same seller is disposing of both properties;
• there was one overall offer and acceptance;
• there was one combined price for both dwellings;
• the purchases appear to form one overall arrangement.

These are classic indicators that the transactions are linked.

Step 3 is to ask whether having different effective dates breaks the link or prevents MDR. On the wording described by Nick, the answer is no. The legislation contemplates linked transactions and then applies Schedule 5 to them. If the purchases are part of one arrangement, different completion or effective dates do not automatically prevent relief.

Step 4 is to check whether any other condition or exclusion in Schedule 5 might affect the claim. That requires a review of the contract documents, titles, parties, and return preparation. For example, the precise ownership structure, whether the dwellings are being acquired in the same proportions, and whether there are any unusual features in the transaction documents may all matter. But on the limited facts provided, the stated objection based only on different effective dates appears weak.

Step 5 is to distinguish this issue from “unsuitable for use” cases. Sometimes buyers ask whether a property can be treated differently for tax because it is uninhabitable or not suitable for use as a dwelling. In that area, the threshold is now relatively high following Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799. That case is relevant to condition-based arguments about whether a property counts as a dwelling, but it is a different issue from whether MDR can apply to linked purchases of two flats.

Outcome

On the facts described, the purchases are likely to be linked transactions for LBTT purposes, and MDR may still be available even if the two transactions have different effective dates. Different effective dates do not, by themselves, prevent MDR where the purchases are part of a single arrangement and the Schedule 5 conditions are otherwise met.

Practical Steps

A buyer in this position should:

• ask the conveyancer to confirm exactly why they say MDR is unavailable;
• check whether the objection is only about different effective dates, or whether there is another legal concern;
• review the offer, acceptance and contract papers to show that the purchases form one arrangement;
• confirm the identity of the buyers and seller across both transactions;
• check how the LBTT returns will be prepared and whether the transactions will be treated as linked;
• review Schedule 5 in detail to ensure all MDR conditions are met;
• keep clear evidence showing that the two flat purchases were negotiated and agreed as one package.

If there is still disagreement, the issue usually turns on the statutory wording and the transaction documents rather than on any general rule that different effective dates defeat MDR.

Conclusion

Where two flats are bought from the same seller under one overall deal, they are likely to be linked transactions for LBTT. Because section 26 is expressly subject to Schedule 5, MDR can in principle apply to linked purchases of multiple dwellings. A different effective date is not, on its own, a reason to deny the relief.

Legal References Used

• Land and Buildings Transaction Tax (Scotland) Act 2013, section 26
• Land and Buildings Transaction Tax (Scotland) Act 2013, Schedule 5
• Amarjeet and Tajinder Mudan v The Commissioners for HMRC [2025] EWCA Civ 799

This page was last updated on 22 March 2026.

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