SDLT relief for multiple dwellings

You can claim relief when you buy more than one dwelling where a transaction or a number of linked transactions include freehold or leasehold interests in more than one dwelling.

If you claim relief, to work out the rate of tax HMRC charge:

  • divide the total amount paid for the properties by the number of dwellings
  • work out the tax due on this figure
  • multiply this amount of tax by the number of dwellings

The minimum rate of tax under the relief is 1% of the amount paid for the dwellings.

Find out more in the HMRC SDLT manual.

Example

You buy 5 houses for £1 million.

£1 million divided by 5 is £200,000.

The amount of SDLT you pay on £200,000 is £1,500 (0% of £125,000 + 2% of £75,000).

£1,500 multiplied by 5 is £7,500.

As this is less than 1% of £1 million (which is £10,000), the amount of tax you pay is £10,000.

Higher rates of SDLT might be charged from 1 April 2016 on purchases of additional residential properties.

When multiple dwellings relief does not apply

The relief does not apply to the transfer of a freehold reversion or headlease where a dwelling has a long lease of 21 years or more.

The rate of tax HMRC charges for this sort of freehold reversion or headlease, or for any non-residential property included in the transaction, is the usual rate without any relief.

You might need to fill in another return and recalculate the tax due if the number of dwellings is reduced within 3 years of the transaction. For example, if you combine 2 flats into 1.

To claim, enter relief code ‘33’ on your return.

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