Budget Changes to Stamp Duty Land Tax affecting property investors

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) applies in England and Northern Ireland; other devolved land taxes apply in Wales and Scotland. The abolition of multiple dwellings relief (MDR) is a key change to SDLT and will apply to land transactions with an effective date on or after 1 June 2024.

Multiple Dwellings Relief (MDR) is a relief currently available when buying two or more dwellings in a single or series of linked transactions. It works by dividing the total amount paid for the properties by the number of dwellings, working out the tax due on that figure, and then multiplying the amount of tax by the number of dwellings. The relief carries a minimum rate of tax of 1% of the total amount paid for the dwellings.

Transitional rules apply to the abolition, so that MDR can still be claimed in some situations where contracts were exchanged on or before 6 March 2024, regardless of when completion takes place. There are exclusions in place though, including that there can be no variation in the contract after 6 March.