Reliefs for transfers involving multiple dwellings: Example 5
The freeholds of four houses and two lock-up shops are purchased in separate linked transactions. Two of the houses cost £250,000 each and the other two cost £350,000 each. The lock-up shops cost £150,000 each.
The transactions involving the houses are relevant transactions for the purposes of the relief. The rate of tax on these transactions is set by the total consideration given in these transactions (£1,200,000) divided by the number of dwellings. This is £300,000 so the rate of tax is 3%. The tax due is therefore 3% of £1,200,000 = £36,000.
The transactions involving the shops are not relevant transactions for the purposes of the relief. The rate of tax on these transactions is set by the total consideration given in all the linked transactions (£1,500,000). As the linked transactions include both residential and non-residential property, the rate of tax is 4%. The tax due is therefore 4% of £300,000 = £12,000.
The total tax due on the transactions is therefore £36,000+£12,000 = £48,000.