Key facts
- MDR was abolished for transactions with an effective date on or after 1 June 2024.
- Before abolition, MDR calculated SDLT on the average price per dwelling (with a minimum 1% effective rate).
- Transitional rules apply for contracts exchanged before 6 March 2024 and completing on or after 1 June 2024.
- The relief was widely used by property investors buying multiple flats or houses in a single deal.
- Buying six or more dwellings in a single transaction is still treated as non-residential, attracting lower rates.
What Was Multiple Dwellings Relief?
Multiple Dwellings Relief (MDR) was an SDLT relief that reduced the amount of SDLT payable when a purchaser acquired two or more dwellings in a single transaction (or in linked transactions). It worked by calculating SDLT on the average price per dwelling rather than the total consideration, often resulting in significantly lower SDLT.[1]
Abolition from 1 June 2024
The Spring Budget 2024 announced the abolition of MDR with effect from 1 June 2024. For transactions with an effective date on or after 1 June 2024, MDR cannot be claimed.[2]
Why abolished: The government determined that MDR was being used in ways not originally intended, particularly by property investors structuring routine purchases to claim the relief. Compliance costs for HMRC were also significant, with a large number of claims being found to be incorrect or aggressive.
Transitional Rules
MDR remains available for a transaction with an effective date on or after 1 June 2024 if:[2]
- Contracts were exchanged before 6 March 2024
- The contract has not been substantially varied after 6 March 2024
- The transaction was not effected in consequence of the exercise of an option or right of pre-emption granted on or after 6 March 2024
If these conditions are met, the purchaser can claim MDR as though the abolition had not occurred.
How MDR Worked (Historical Reference)
For transactions before 1 June 2024, MDR worked as follows:[3]
- Calculate the total consideration for all dwellings
- Divide by the number of dwellings to get the average price
- Calculate SDLT on the average price using the standard residential rates
- Multiply the resulting SDLT by the number of dwellings
- Apply a minimum effective rate of 1% of the total consideration
Historical Worked Example
A property investor purchased three flats for a total of £600,000 (before 1 June 2024):
| Calculation | Without MDR | With MDR |
|---|---|---|
| Consideration for SDLT | £600,000 total | £200,000 average per dwelling |
| SDLT per unit/total | £20,000 (on £600,000) | £1,500 per flat (on £200,000) |
| Total SDLT | £20,000 | £4,500 (3 × £1,500) |
| Minimum test (1%) | — | £6,000 (1% of £600,000) |
| SDLT payable | £20,000 | £6,000 (minimum applies) |
Six or More Dwellings: Still Available
The “six or more dwellings” rule was not affected by the abolition of MDR. If you purchase six or more residential properties in a single transaction, the entire transaction is treated as non-residential for SDLT purposes, attracting the lower commercial rates:[1]
| Purchase Price Band | Non-Residential Rate |
|---|---|
| Up to £150,000 | 0% |
| £150,001 – £250,000 | 2% |
| Over £250,000 | 5% |
This remains a valid planning point for larger portfolio purchases.
Tip: If you previously purchased multiple dwellings in a transaction that completed before 1 June 2024 and did not claim MDR, you can still amend your SDLT return within 12 months of the filing date to claim the relief retrospectively.
Frequently Asked Questions
Can I still claim Multiple Dwellings Relief?
No, unless you are covered by the transitional rules. MDR was abolished from 1 June 2024. If your transaction completed on or after that date, MDR is not available unless you exchanged contracts before 6 March 2024.
Why was MDR abolished?
The government stated that MDR was being widely used in ways that went beyond its original policy intent, including in routine buy-to-let transactions. It was also subject to a significant number of HMRC compliance interventions and tribunal cases.
What about buying six or more dwellings?
Purchasing six or more dwellings in a single transaction is still treated as a non-residential purchase for SDLT, attracting the lower commercial rates. This rule was not affected by the abolition of MDR.
Do the transitional rules apply to me?
The transitional rules apply if you exchanged contracts before 6 March 2024 and the transaction completes on or after 1 June 2024, provided the contract has not been substantially varied after 6 March 2024.
Further Reading
- Residential SDLT Rates (2025/26) — current rates without MDR
- Higher Rates for Additional Dwellings — the 5% surcharge on investment properties
- Commercial SDLT Rates — rates that apply to six-or-more-dwelling purchases
- SDLT Rates History — how rates and reliefs have changed
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