SDLTM29901 - Abolition of multiple dwellings relief for SDLT

Multiple Dwelling Relief (MDR) has been abolished for transactions which complete, or which substantially perform (see SDLTM07850), on or after 1 June 2024. However, purchasers who exchanged contracts on or before 6 March 2024 remain eligible for MDR regardless of when the transaction completes, provided there is no variation of the contract after that date (see SDLTM29902).

There are transitional rules for transactions which are linked (see SDLTM30100) and include the purchase of dwellings both before and after the change. Where MDR was claimed on the transaction(s) taking place before the change, the transaction(s) taking place after the change are treated as no longer being linked to them (see SDLTM29903)

Interaction between MDR and FA03 S116(7)

Prior to the abolition of MDR, it was the purchaser's choice whether to claim MDR or to apply FA03 S116(7), whereby the purchase of six or more dwellings in a single transaction was treated as a non-residential transaction for the purposes of SDLT. Where MDR is no longer available there is no longer a choice.

Where there is a purchase of six or more dwellings in a single transaction, FA03 s116(7) will apply to treat the transaction as non-residential (see SDLTM00365).