Important Update: Multiple Dwellings Relief (MDR) to End on June 1st, 2024 - What You Need to Know

In a significant announcement within the latest Spring Budget for 2024, the government declared the discontinuation of Stamp Duty Land Tax (SDLT) Multiple Dwellings Relief (MDR), effective from June 1, 2024.

Understanding Multiple Dwellings Relief (MDR):

MDR serves as a provision applicable when purchasing two or more dwellings in a single transaction or a series of linked transactions. It facilitates SDLT calculation based on the average value of the properties involved rather than the total purchase price, offering considerable savings to buyers.

Impact and Implications:

The end of MDR represents a notable shift in SDLT regulations, affecting various stakeholders in the property market. While individuals who have already exchanged contracts before March 6, 2024, can still benefit from MDR, those yet to exchange contracts can do so if both exchange and completion occur before June 1, 2024.

Reasons Behind the Decision:

The government's decision to scrap MDR stems from its perceived failure to stimulate investment in the private rented sector as intended, coupled with an increase in false claims. Although there were consultations regarding changes to reliefs, no explicit mention of MDR alterations was made in the Autumn Budget of 2023.

Potential Market Dynamics:

MDR's impending abolition may trigger a rush to complete deals before the deadline, potentially influencing property market dynamics, particularly for businesses such as developers and investors who heavily rely on this relief.

Other SDLT Changes and Considerations:

While there are no proposed alterations to SDLT beyond MDR, mixed-use claims or other reliefs may see changes in the future. The government aims to engage with the agricultural sector to gauge further potential impacts.

Seeking Guidance:

It's crucial for individuals and businesses involved in property transactions to stay informed and seek professional advice. Consulting with a solicitor can help navigate these changes effectively and explore alternative SDLT reliefs that may be available.

In conclusion, the end of MDR underscores a significant regulatory change in SDLT, prompting stakeholders to reassess their strategies and seek guidance to adapt to the evolving landscape of property transactions.

For guidance tailored to your specific situation, please reach out to our Commercial Property Solicitors on 023 9275 3575 or email enquiries@warnergoodman.co.uk.