Multiple Dwelling Relief (MDR) is one of the most overlooked reasons for paying too much Stamp Duty Land Tax in the UK each year. Introduced in 2003 it allows for either less tax to be paid up front if certain conditions are met or for it to be legally reclaimed up to four years after the transactions take place.
One option is where the property purchased contains certain historic features. These can include such things as annexes, granny-wings, stables, woodland, barns, studio and outhouses. This means that the any purchase was of in fact a purchase of “multiple dwellings” and therefore a lower band should of SDLT have been applied.
Another option is where a “chain” of multiple properties have been purchased at the same time. Some conveyancers merely add the total value together which can result in in a far higher charge than should have been charged.
Finally property developers are often the biggest victims of overpaying SDLT. Many of their purchases are complex involving uninhabitable land or plots with outline planning permissions so it’s almost inevitable that without specialist help the wrong SDLT will be paid.