How to Save Money on Property Tax with Multiple Dwellings Relief
Back in 2011, the government introduced the Multiple Dwellings Relief (MDR) scheme to encourage people to invest in residential property. Purchasers of residential property who acquire an interest in more than one dwelling may benefit from the MDR. Multiple dwellings relief is intended to reduce the amount of SDLT applicable to the purchase of more than one dwelling.
What Counts as a Dwelling for MDR?
To be eligible for claiming MDR, a property needs to have a few basic facilities to qualify it as a dwelling. Some of these facilities include:
- Kitchen
- Bathroom
- Interlocking doors
- Most utilities being independent.
These facilities, among a few others, are essential for a property to be considered as a dwelling, as it ensures a comfortable living situation.
When Can You Claim MDR?
MDR is applicable when a single or linked transaction has at least two dwellings. Furthermore, one must claim MDR to obtain the benefits, as it is not applicable automatically.
What Types of Properties Qualify for MDR?
Properties of the following nature can be considered applicable for Multiple Dwellings Relief:
- Houses, apartments, or flats bought in bulk
- Self-contained annexe purchased with a main house
- Mixed-use property (e.g., a shop with a flat above)
How to Claim MDR for a Past Purchase?
Yes, MDR can be claimed retrospectively. If you have yet to claim your MDR or want to make any amendments to the past claim, you have up to twelve months from the date of filing the original return to make any necessary changes.
For more information you can visit our complete guide on Multiple Dwellings Relief for more details.
