This relief is specifically designed for residential property purchases that include more than one self-contained dwelling. Known as Multiple Dwellings Relief (MDR), it involves combining the total cost of all properties purchased in a single transaction into one cost. However, the calculation of Stamp Duty Land Tax (SDLT) is based on the average price of each individual dwelling.

The key concept behind this relief is the definition of a “dwelling.” In the context of MDR, a “dwelling” refers to a single self-contained living space, such as a house or a flat, where the occupant can lead a private domestic life.

Properties that commonly qualify for MDR include those with an annexe, granny flat, or outbuilding, among others.

It is important to note that the relief does not apply when there are only plans in place to construct multiple dwellings. MDR only encompasses existing dwellings. However, if adaptations or modifications are in progress at the time of purchase, it may meet the requirements for the relief.

Furthermore, it is crucial to be aware that the window to claim this relief is limited to 12 months from the filing deadline. This means that you have just over 12 months from the time of purchase to make a claim.