Multiple Dwellings Relief (MDR) and Stamp Duty

If you are buying more than one residential unit—such as multiple flats, a house with a self-contained annex, or several units in a block—you might qualify for Multiple Dwellings Relief (MDR).

MDR is an SDLT relief that can reduce the amount of Stamp Duty Land Tax payable by calculating the tax based on the average price per dwelling rather than the total purchase price.

What Is Multiple Dwellings Relief?

MDR applies when two or more residential properties are purchased in a single transaction or linked transactions.

Instead of paying SDLT on the full combined price, HMRC allows the use of the average price per dwelling, which typically lowers the total tax bill.

Common situations include:

• Investors buying several flats or houses
• Homebuyers purchasing a property with an annex
• Developers or landlords acquiring multiple units at once
• Purchasers of mixed-use properties with multiple residential elements

What Counts as a “Dwelling”?

For MDR purposes, each dwelling must be:

• Self-contained
• Suitable for separate residential use
• Equipped with essential facilities like a kitchen, bathroom, and private entrance

Eligible properties may include:

• Flats
• Houses
• Self-contained annexes
• Student flats (but not halls of residence)
• Appropriately structured units within Houses in Multiple Occupation (HMOs)

What Counts as a “Dwelling”?

If you buy properties from the same seller under separate contracts, these might be treated as linked transactions by HMRC. This means MDR could still apply.

For purchases involving six or more dwellings, there may also be opportunities to apply non-residential SDLT rates, which sometimes provide additional savings.

When and How Can MDR Be Claimed?

You can claim MDR:

• At the time of purchase, usually via your solicitor or tax advisor
• Up to 12 months after the SDLT return has been submitted, if you have already completed the purchase

Many buyers overpay SDLT initially, and a review of your case—even after completion—could identify overpaid tax.

Why Seek Specialist Advice?

MDR rules are technical and can be complex to apply correctly. Incorrect claims may be rejected or lead to penalties.

Specialist advice can help ensure that:

• Your purchase is reviewed accurately
• Eligibility for MDR is confirmed
• Potential savings are calculated correctly
• SDLT returns are properly submitted or amended

If you have bought or are buying multiple residential units, it can be useful to check whether MDR applies to your purchase.

For more information or a case review, you may wish to consult an SDLT specialist.