This site uses cookies to improve your browsing experience and analyse use of our website. By clicking ‘I accept’ you agree and consent to our use of cookies. You can find out more about our cookies here. Find out more

Multiple Dwellings Relief (MDR)

Multiple Dwellings Relief (MDR)

Ted, a property developer, is planning to purchase a block of 10 flats for a total consideration of £900,000 and has queried the SDLT position. The flats will be purchased by his limited company, Ted Developments Limited.



  • As Ted Developments is purchasing from the same vendor as part of one deal, the transaction will be considered to be a ‘linked transaction’ and therefore the total consideration is aggregated.

  • The super rate of 15% associated with companies purchasing high value residential property will not be applied as no individual property exceeds the threshold of £500,000.

  • The 3% surcharge will be applied as it is a corporate purchase.

  • On first principles, if the Table A rates (residential) are applied along with the 3% surcharge, the SDLT payable would be £62,000.

  • However, the legislation specifically provides that where 6 or more dwellings are purchased, they will not be treated as residential property. Accordingly, the rates at Table B (non-residential) should be applied, resulting in the total tax payable of £34,500.

  • Moreover, a claim for Multiple Dwellings Relief (MDR) could be claimed as more than 2 properties are being purchased. If MDR is claimed, the above rule of using Table B is disapplied, so that Table A (using the 3% surcharge) is applied to the average price of each flat and this figure is then multiplied by the number of flats. A claim for MDR would result in SDLT payable of £27,000.


Following our advice, the company made a claim for MDR and needless to say Ted was a very happy developer!

If you have any queries around SDLT please do not hesitate to get in contact via our SDLT Advisory Service.

Return to case studies