Relief for transfers multiple dwellings: Overview
Where the relief is claimed, the rate of SDLT which applies to the consideration attributable to interests in dwellings is determined by reference to the amount of this consideration, divided by the number of dwellings (i.e. the mean consideration attributable to the dwellings). This is subject to a minimum rate of 1%.
The rate of SDLT which applies to the consideration attributable to interests in land other than dwellings (if any) is the rate which would apply in the absence of the relief.
Superior freehold or leasehold interests in dwellings subject to leases granted for an initial period of 21 years or more are not eligible for relief.
The relief includes provision for “off-plan” purchases where construction or adaptation of the property for residential use may not have commenced by the effective date of the transaction. It also provides for the tax calculation to be adjusted if the number of dwellings involved is reduced within three years of the effective date of the transaction.