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HMRC internal manual

Stamp Duty Land Tax Manual

Relief for transfers involving multiple dwellings: Consideration attributable to interests in dwellings FA03/SCH6B/PARA5(1) - (6)

In order to calculate the tax due, the following steps are required:

  • Divide the total chargeable consideration given for all the dwellings by the number of dwellings to produce an average consideration.
  • Calculate the amount of tax due (using the residential rates and higher rates if applicable) on the average consideration and multiply this by the number of dwellings.
  • If there are linked transactions, the amount of tax is then apportioned to each transaction in proportion to its share of the total consideration attributable to the dwellings.

If the amount of tax equals less than 1% of the total consideration for the dwellings, then the full relief will not apply and SDLT is deemed to be 1% of the consideration.

This figure is the tax attributable to dwellings.

In order to reach the full amount of SDLT due, this will need to be added to the SDLT due on the non dwelling elements of the transaction. See SDLTM29945 for an explanation of how to calculate the SDLT due on the remaining consideration.

Note that if multiple dwelling relief is being claimed, FA03/S116(7) (six or more dwellings treated as non-residential property) does not also apply.