Q&As

Can you claim multiple dwellings relief (MDR) for SDLT where a property includes a main house and a granny annex within the same grounds? Can you claim MDR and also rely on the subsidiary dwelling exemption to avoid the 3% higher rates (assuming nothing else triggers the higher rates)? If MDR has not been claimed but is available, what procedure should be followed to obtain a refund of any overpaid tax?

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Produced in partnership with Mary Ashley of Old Square Tax Chambers
Published on LexisPSL on 13/12/2017

The following Tax Q&A produced in partnership with Mary Ashley of Old Square Tax Chambers provides comprehensive and up to date legal information covering:

  • Can you claim multiple dwellings relief (MDR) for SDLT where a property includes a main house and a granny annex within the same grounds? Can you claim MDR and also rely on the subsidiary dwelling exemption to avoid the 3% higher rates (assuming nothing else triggers the higher rates)? If MDR has not been claimed but is available, what procedure should be followed to obtain a refund of any overpaid tax?
  • Multiple dwellings relief
  • MDR and subsidiary dwelling exemption
  • Annexes (subsidiary dwellings)
  • Refund of overpaid tax

Can you claim multiple dwellings relief (MDR) for SDLT where a property includes a main house and a granny annex within the same grounds? Can you claim MDR and also rely on the subsidiary dwelling exemption to avoid the 3% higher rates (assuming nothing else triggers the higher rates)? If MDR has not been claimed but is available, what procedure should be followed to obtain a refund of any overpaid tax?

Multiple dwellings relief

Multiple dwellings relief (MDR) applies to certain transactions that involve an acquisition of at least two dwellings or an acquisition of one dwelling that is linked to an acquisition of another dwelling. When MDR applies, the total consideration for the dwellings is divided by the number of dwellings acquired to find the average price. The rate of stamp duty land tax (SDLT) is based on that average price instead of on the total consideration (subject to a minimum rate of 1%).

Whether or not MDR will apply to a particular granny annex will depend upon whether or not the granny annex would be treated as a separate dwelling for the purposes of MDR. Paragraph 7, Schedule 6B to the Finance Act 2003 (FA 2003)

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