Stamp Duty Land Tax: mixed-property purchases and Multiple Dwellings Relief
Read the full outcome
Detail of outcome
In relation to mixed-property purchases, the government has decided not to take forward any changes to the Stamp Duty Land Tax rules.
In relation to Multiple Dwellings Relief (MDR), following the consultation, the government commissioned an external evaluation of MDR to assess whether the relief is meeting its original objectives of supporting investment in residential property and the private rented sector.
The evaluation found no strong evidence that MDR supports these objectives. The government’s view therefore is that the relief no longer achieves its original aims in a cost-effective way and legislation will be introduced to abolish MDR with effect from 1 June 2024.
While the potential options for reform of MDR outlined in the consultation document have now been overtaken by the decision to abolish MDR, the responses to the original consultation on MDR are, nevertheless, set out in this response document.
Original consultation
Consultation description
This consultation invites views on possible changes to 2 areas of the Stamp Duty Land Tax (SDLT) regime:
- changes to the way SDLT is calculated for purchases of mixed-property - that is, purchases which consist both of residential and non-residential property
- options to reform Multiple Dwellings Relief, available on the purchase of 2 or more dwellings
The aim of this consultation is both to make the system fairer and to reduce the scope for incorrect or abusive claims.
HMRC welcomes discussions with interested parties. If you would like to meet with policy officials, please contact HMRC.
Documents
Updates to this page
Last updated 6 March 2024 + show all updates
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Published a summary of responses to the consultation.
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Example 6C corrected to show that the transaction is subject to the higher rate surcharge on the purchase of additional dwellings.
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First published.