Spring Budget 2024 – Multiple Dwellings Relief axed
Multiple Dwellings Relief (MDR) is a stamp duty land tax (SDLT) relief that is currently available if you buy two or more residential properties in a single transaction or a series of linked transactions.
It allows the rate of tax to be calculated based on the average value of the properties purchased rather than the aggregate value, which saves SDLT on the overall purchase.
The relief was originally intended to promote investment in residential property and increase the amount of private rented houses available. However, an external review initiated by the Government has concluded that the relief has not really helped with these aims.
The Spring Budget announcements therefore included that MDR will be abolished with effect from 1st June 2024.
Provided the contracts on a purchase you might be currently undertaking were exchanged before 6th March 2024 (the date of the Spring Budget), and there’s no change in the contracts afterwards, then MDR can be claimed regardless of when the purchase completes.
Obviously, MDR can also apply to any purchases where the contracts have not yet exchanged but the transaction will complete before 1st June 2024.
You can see our Spring Budget Summary here.
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