Q&As

Can multiple dwellings relief (MDR) apply on the acquisition of a property that includes a house and a granny annex in the garden with separate access, but no separate address, council tax banding or title? How does this interact with the 3% higher rates of stamp duty land tax on additional residential properties?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 26/06/2018

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

  • Can multiple dwellings relief (MDR) apply on the acquisition of a property that includes a house and a granny annex in the garden with separate access, but no separate address, council tax banding or title? How does this interact with the 3% higher rates of stamp duty land tax on additional residential properties?

Can multiple dwellings relief (MDR) apply on the acquisition of a property that includes a house and a granny annex in the garden with separate access, but no separate address, council tax banding or title? How does this interact with the 3% higher rates of stamp duty land tax on additional residential properties?

Stamp duty land tax (SDLT) multiple dwellings relief (MDR) applies to the acquisition of more than one dwelling: see Practice Note: SDLT—multiple dwellings relief.

For the purposes of the relief, a building or part of a building is a dwelling if, among other things, it is suitable for use as a single dwelling; and land that is occupied or enjoyed with a dwelling as a garden or grounds (including any building on such land) is taken to be part of the dwelling. Obviously, the main house is a dwelling. It is less clear whether the granny annex is part of that dwelling or is a separate dwelling,

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