What MDR did and what its abolition costs portfolio landlords
MDR applied to purchases of 2+ dwellings in one transaction: SDLT was calculated on average price per dwelling, not total consideration, then multiplied by dwelling count. This placed each unit in a lower SDLT rate band. From 1 June 2024, the full residential rate bands apply to the total consideration — no averaging. Transitional protection applies only to contracts exchanged on or before 6 March 2024 (Spring Budget announcement date). The six-dwellings rule (commercial rates for 6+ dwellings) and mixed-use relief survive the abolition.
Welsh LTT MDR abolished — Scottish LBTT MDR survives
Welsh LTT MDR was abolished from 1 June 2024 (Land Transaction Tax (Abolition of Multiple Dwellings Relief) (Wales) Regulations 2024). Full LTT rates now apply to all Welsh multi-dwelling purchases — no Welsh six-dwellings equivalent. Scottish LBTT MDR was not abolished — still available for Scottish purchases of 2+ dwellings in one transaction via Revenue Scotland SETS, with ADS (8%) still applicable. Northern Ireland: SDLT MDR abolished in the same way as England.
Six-dwellings rule and phased acquisition strategy
Six-dwellings rule: buying 6+ residential dwellings in a single transaction allows commercial rate SDLT (0%/2%/5%) — no 5% surcharge. For exactly six dwellings, the commercial rate is often significantly cheaper than residential rates. Phased individual purchases: each separate transaction is assessed individually — no compounding into higher rate bands — often cheaper than a bulk purchase without MDR. Linked transaction rules may combine 'separate' purchases between the same parties — ensure genuine independence of transactions.
BTL company acquisitions and cross-border planning post-MDR
Limited company BTL: same SDLT rates as individuals post-MDR; 5% surcharge applies without exception for companies. Block-of-flats as single freehold title: may be one dwelling for SDLT (neither MDR nor six-dwellings applies) — specialist advice essential. Cross-border planning: Scottish LBTT MDR still available for Scottish portfolio purchases; English and Welsh elements of cross-jurisdictional acquisitions assessed under post-MDR rules. SDLT surcharge refund (3-year window for main residence replacement) unaffected by MDR abolition.