Last updated: 14 October 2026
Can you still claim Multiple Dwellings Relief on stamp duty?
No. Multiple Dwellings Relief (MDR) was abolished for transactions completing on or after 1 June 2024. It let buyers of two or more homes in one transaction pay SDLT based on the average price per dwelling. There’s a limited exception for contracts exchanged on or before 6 March 2024, but it’s very unlikely to apply to a purchase now. Buyers of several homes must find other ways to keep SDLT down.
What replaced it?
Nothing directly. But other rules still help in some cases:
| Rule | How it can help |
| Six or more dwellings | Buyer can elect to pay non-residential rates (top rate 5%) |
| Mixed-use property | Non-residential rates apply if any part is commercial |
| Granny annexes | An annex in the same purchase may not trigger the 5% surcharge if it’s for a family member |
| Separate transactions | Unlinked purchases are taxed separately, but linked ones are combined |
The six-dwelling rule
If you buy six or more dwellings in a single transaction, you can choose to treat the purchase as non-residential. Non-residential SDLT rates are 0% to £150,000, 2% to £250,000 and 5% above. The 5% higher rate for additional dwellings doesn’t apply.
Example
Morton Lettings Ltd buys a block of 6 flats for £1.8 million in 2026. As residential, with the 5% surcharge for companies, SDLT would be substantial. By electing for non-residential rates, it pays 0% on £150,000, 2% on £100,000 and 5% on £1,550,000: £79,500.
Linked transactions
Purchases between the same buyer and seller, or connected people, as part of a single scheme are “linked”. SDLT is then worked out on the total price, which can push a purchase into higher bands.
Refunds for past MDR claims
HMRC has challenged many past MDR claims, especially for annexes and properties that weren’t separate dwellings. If you claimed MDR before June 2024, keep the evidence that each unit had its own facilities and access. Be wary of firms offering to reclaim SDLT on old purchases.
What counts as a dwelling
A building or part of a building suitable for use as a single home. HMRC and the tribunals look at whether a unit has its own kitchen, bathroom, entrance and security.
The higher rates for additional dwellings
From 31 October 2024, the surcharge for additional homes is 5% on top of the standard rates. Companies buying a residential property for more than £500,000 may pay a flat 17% rate unless an exemption, such as for property rental businesses, applies.
Common mistakes
- Relying on old online calculators that still apply MDR
- Treating purchases from the same seller as unlinked when they are part of one deal
- Electing for non-residential rates on fewer than six dwellings
- Paying an SDLT reclaim firm a large fee for a claim HMRC later rejects
Frequently asked questions
Can I claim MDR on a house with an annex?
No, MDR no longer applies; check the surcharge rules instead.
Does the six-dwelling rule apply to individuals?
Yes, any buyer.
Can I spread purchases to avoid linked transactions?
Only if they are genuinely separate deals.
Is MDR available in Wales?
Wales has its own Land Transaction Tax rules.
Related: stamp duty rates, SDLT on transfers to limited companies and the SDLT surcharge on second homes.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with stamp duty on property portfolios. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
