Multiple Dwellings Relief
When you purchase multiple dwellings at once, you can claim relief to reduce the amount of Stamp Duty you pay. 1 in 3 purchasers overpay HMRC in Stamp Duty charges. Find out if you could get a Stamp Duty refund under the Multiple Dwelling clause before the deadline.
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What is Multiple Dwellings Stamp Duty Relief?
You pay a reduced rate of Stamp Duty if you buy multiple dwellings (homes) at once. The amount you pay depends on the number of dwellings purchased and the total amount paid for the property(s). As a minimum, you have to pay 1% of the total purchase price in Stamp Duty when eligible for this relief.
Important information: Apply for Multiple Dwellings Relief before the 2024 and 2025 deadline
From 01 June 2024, HMRC will no longer offer Stamp Duty reductions or exemptions under this clause. You can still apply for Multiple Dwellings Relief on purchases that complete on 31 May 2024, or have exchanged on 06 March 2024 with no subsequent variations. Applications for relief can be submitted up until 31 May 2025.
Check your eligibility for any other Stamp Duty reliefs or refunds.
What properties qualify for Multiple Dwellings Relief?
Buying multiple houses, apartments, or flats at once
Purchasing a house with a self-contained annex
Buying Mixed Use properties (e.g., a shop with a flat)
Need to apply before the deadline?
Claiming Stamp Duty relief for multiple dwellings
You can claim a reduced Stamp Duty payment under the Multiple Dwellings clause if:
- You are buying more than 1 dwelling at once (freehold or leasehold)
- You have contractual plans at the time of purchase to convert the property to multiple dwellings
- The property you are purchasing is in the process of being converted into multiple dwellings
You will not be able to claim relief if the dwellings are subject to leases that last 21 years or more, except if it’s a shared ownership property.
Applications for Multiple Dwellings Relief can be submitted up to 12 months after the date of purchase. As this relief will be abolished from 01 June 2024, you must file an application by 31 May 2025 for any properties that complete on 31 May 2024.
You could get a Stamp Duty refund if you reduced the number of dwellings within 3 years of purchase.
For example, if you bought 2 flats in the same building and combined them into 1 a year later, you could get a Stamp Duty refund.
You can also get a refund if the property was being converted from 1 dwelling to 2 at the time of purchase, or the property was bought “off plan”. I.e., construction to convert the property started after purchase.
You could be owed a significant refund
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Examples
01
Example 1:
You buy 4 houses for £1 million. £1 million divided by 4 is £250,000.
There is no Stamp Duty for properties costing below £250,000.
Since a minimum of 1% Stamp Duty must be paid for Multiple Dwelling purchases, the Stamp Duty to be paid is £10,000.
02
Example 2:
You buy 2 houses for £600,000. £600,000 divided by 2 is £300,000.
5% Stamp Duty must be paid on properties costing between £250,000 and £925,000, which equates to £2,500.
£2,500 multiplied by 2 is £5,000.
The Stamp Duty to be paid is £5,000.
Are you owed thousands in Stamp Duty?
How much Stamp Duty will I pay when buying multiple dwellings?
To calculate how much Stamp Duty you’ll pay when buying multiple dwellings:
- Divide the total purchase cost by the number of dwellings you’re buying to work out a per property cost,
- Apply the relevant Stamp Duty rates to the per property cost,
- Multiply this amount by the number of dwellings,
As a minimum, you need to pay 1% Stamp Duty when purchasing multiple dwellings, like a block of flats or a row of houses.
If you’re purchasing the dwellings as an individual and you already own another property, and the purchase of these dwellings isn’t going to replace your main home, you’ll also need to pay the 3% surcharge for Second Home purchases.
When purchasing multiple dwellings that have some residential and non-residential areas, like a shop with a flat, you may be able to apply for Mixed Use Relief.
Frequently asked questions about Multiple Dwellings Relief
When you already own a property and are purchasing another, you have to pay a higher rate of Stamp Duty. This is known as the 3% surcharge, as you add 3% to the standard Stamp Duty rates when buying a second home.
If you’re purchasing multiple dwellings, you can apply for Multiple Dwellings Relief (MDR) up until 31 May 2024. This enables you to pay less Stamp Duty than you would if you were purchasing the properties individually.
You still need to pay the 3% surcharge for Second Homes after getting MDR if you own another property as well as the ones you’re buying. If you’re a non-UK resident for Stamp Duty purposes, you must pay a further 2% surcharge on top of this.
The Multiple Dwelling Relief (also known as MDR or MMDR for Mixed Multiple Dwellings Relief) was introduced in 2011 and scrapped in the Spring Budget Announcement on 06 March 2023. Any purchases that complete by 31 May 2024 can still apply for MDR up to a year after (on 31 May 2025). After that, MDR will cease to exist and no further applications for this relief can be made.
Explore other Stamp Duty Reliefs you may be eligible for or contact our expert team.
You can claim Multiple Dwelling relief when purchasing more than one dwelling or property at once. You can also claim relief if a building you’re purchasing will be turned into flats before or after completion. When you’re buying a conversion property, construction work can already be underway or it can start after completion. To qualify for the relief, the conversion must be written into the purchase contract.
If you qualify for Multiple Dwelling Relief, you need to act fast. The discounted rates only apply to purchases that complete before 01 June 2024. The deadline to apply for MDR is 31 May 2025. Properties that have exchanged on 06 March 2023 and have not yet completed, but have had no contract variations since exchange, can also apply for MDR up to 12 months after completion.
A clawback of Multiple Dwellings Relief (MDR) is when you have to pay more or be refunded Stamp Duty if certain events take place within 3 years of buying the property. For example, if you convert 2 flats into 1 flat 12 months after purchasing the dwellings, you can get a refund on the Stamp Duty if you apply for it within 3 years of the original purchase date.
Learn more about applying for Stamp Duty Refunds.
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Fast, informative and successful!
Paul EdwardsI reached out to StampDuty.com in August to discuss a purchase I made last year.
The property was in a bad state of repair, lots needed doing. When StampDuty.com gathered the documents and images of the property, they let me know I could save roughly £40,000. This seemed amazing but i was sceptical, why didn't my lawyer point this out. After many reassuring conversations and pointing to legislation to explain their answers, we pushed ahead.
I am pleased to say I received my refund at the end of October! I just want to thank Joe and the team for all of their hard work and the fast turnaround.