Frequently Asked Questions
What is Multiple Dwellings Relief (MDR)?
Multiple Dwellings Relief (MDR) is an SDLT relief available when you buy two or more dwellings in a single transaction or linked transactions. It works by calculating SDLT on the average price of each dwelling and multiplying by the number of dwellings, which often results in a lower total tax bill than applying SDLT to the full purchase price.
How do you calculate MDR on SDLT?
Divide the total purchase price by the number of dwellings to find the average price. Calculate standard residential SDLT on that average price. Multiply the result by the number of dwellings. If this is less than 1% of the total consideration, the minimum 1% floor applies instead. Compare the result against standard SDLT on the full price to confirm a saving.
Is Multiple Dwellings Relief still available in 2026?
Yes. MDR was proposed for abolition from June 2024, but following the change in government, the abolition was not implemented. MDR remains available for qualifying transactions in 2026. Always check current HMRC guidance as tax law can change.
What is the minimum SDLT charge with MDR?
SDLT with MDR cannot be less than 1% of the total consideration paid for all the dwellings. This minimum floor prevents the relief being used to reduce SDLT to negligible levels on large portfolios of low-value properties.
When does MDR not apply?
MDR does not apply to purchases of a single dwelling, to non-residential or mixed-use property, to properties in Scotland (which has LBTT) or Wales (which has LTT). It also cannot be claimed if the dwellings are not all residential, and certain linked transaction rules may affect eligibility.