Will the axing of Multiple Dwellings Relief affect me?

Are you buying multiple properties or a property with an annexe? If so, have you factored into your budgeting or the timing of your purchase the fact that Multiple Dwellings Relief (MDR) will no longer be available after 1 June 2024?

MDR has, over the past few years, been claimed by a number of people who have bought qualifying properties and they have made considerable savings in Stamp Duty as a result.

Recently, the rules have in any case become more stringent in terms of what properties do and do not qualify.  Before 2020, it was often possible to claim MDR where an annexe was attached to a property, if it was eligible to be regarded as a separate dwelling.  Since 2020, an annexe attached to the main property has no longer qualified.  Even where it is detached, there are rules around the levels of privacy and security that need to be available in separate dwellings.

However, there have still been circumstances in which MDR was claimable.

In the 2024 Spring Budget, the Chancellor announced that this relief would be discontinued.

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Any qualifying property where the exchange of contracts had already taken place before 6 March 2024 will still qualify even if the completion of the sale is delayed, so long as the main terms of the contract remained the same.

Any qualifying property on which the transactions complete or “are largely performed” before 1 June, will also still be eligible for MDR.

If you think you are in any way affected by this, for example because you have an ongoing purchase which would currently qualify, then you should discuss the timing implications with your lawyer.

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The solicitors at Fraser Dawbarns LLP will be happy to review your conveyancing and property-related matters. Contact Iain Grimes on 01366 381810 or iaingrimes@fraserdawbarns.com for further information on how MDR will affect you.

This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek advice specific to your own circumstances.  Fraser Dawbarns LLP are always happy to provide such advice.