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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Relief for transfers involving multiple dwellings: Example 1

The freehold of a new block of 20 flats is purchased for £2.5 million. There is no headlease and none of the flats is subject to a long lease.

The transaction is a relevant transaction for the purposes of the relief as it involves the acquisition of more than one dwelling - i.e. the 20 flats. The freehold is treated as if it were interests in the individual dwellings. The chargeable consideration divided by the number of dwellings is £125,000. This is below the normal 0% SDLT threshold but the minimum rate of tax under the relief is 1%.

The tax due is therefore 1% of £2.5 million = £25,000.