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One dwelling or two?

Shared from Tax Insider: One dwelling or two?
By Mark McLaughlin, August 2021

Mark McLaughlin looks at stamp duty land tax multiple dwellings relief, and houses with 'granny flats.' 

Buying a home (in England and Northern Ireland) can be expensive for stamp duty land tax (SDLT) purposes. The top rate of SDLT for residential properties is 12% (NB the rates are increased by 3% for purchases of additional residential properties and by 2% for purchases by non-UK residents). 

Multiple dwellings relief 

However, the SDLT liability will often be lower if 'multiple dwellings relief' (MDR) is available. MDR broadly involves calculating the SDLT that would be chargeable if the total purchase price for the residence was divided by the number of dwellings, then multiplying that SDLT by the number of dwellings (subject to a minimum SDLT rate of 1%). 

The MDR calculation depends on the number of single dwellings

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