Reshma Johar delves into the increasingly popular multiple dwellings relief for stamp duty land tax relief purposes.
Multiple dwellings relief (MDR) is a useful relief from stamp duty land tax (SDLT). Where MDR applies, the relief provides purchasers with a saving, by enabling each dwelling use of the SDLT nil rate band and lower rate bands.
Advisers will need to tread carefully to establish what rates and possible reliefs apply to the transaction.
Since 8 July 2020, there has been an ‘SDLT holiday’ on the rates for residential properties by the extension of the ‘nil rate band’. From 1 July 2021, there will be a ‘staged’ withdrawal of the nil