Multiple Dwellings Relief: Is Your Claim Still Open?
MDR was abolished in June 2024 — but pre-2024 purchases may still be in time.
Key facts
- •MDR was abolished for transactions completing on or after 1 June 2024
- •If you completed before 1 June 2024, you may still be entitled to claim
- •You have 4 years from the effective date to claim overpayment relief
- •A property purchased on 31 May 2022 has a claim deadline of 31 May 2026 — imminent
What Multiple Dwellings Relief was
Multiple Dwellings Relief allowed buyers purchasing two or more dwellings in a single transaction (or linked transactions) to calculate SDLT based on the average price per dwelling rather than the total price. On higher-value transactions this produced savings of tens of thousands of pounds.
Common scenarios where MDR applied: buying a house with a self-contained annexe or granny flat; buying multiple flats in one transaction; or buying a property with a separate cottage in the grounds.
Who should check
Annexe or granny flat
You bought a property with a self-contained annexe or granny flat before 1 June 2024.
Multiple dwellings
You bought multiple dwellings in a single or linked transaction before 1 June 2024.
Separate dwelling included
You bought a property where a separate dwelling — a cottage or studio — was included.
What “self-contained” meant for MDR
HMRC's test was whether the subsidiary dwelling had its own entrance, kitchen or cooking facilities, and bathroom, and could function independently. It did not need to be a separate legal title.
The deadline is closing
Overpayment relief must be claimed within 4 years of the effective date of the transaction. For the earliest purchases that window has already closed. For purchases from mid-2022 onwards, claims are still potentially open — but not for long.
| Completion date | Claim deadline |
|---|---|
| 1 June 2020 | 1 June 2024 — PASSED |
| 1 January 2021 | 1 January 2025 — PASSED |
| 1 June 2021 | 1 June 2025 — PASSED |
| 1 January 2022 | 1 January 2026 — PASSED |
| 1 June 2022 | 1 June 2026 — IMMINENT |
| 1 January 2023 | 1 January 2027 |
| 1 June 2024 | ABOLISHED — no new claims |
Illustrative deadlines based on the 4-year overpayment relief window. Your exact deadline runs 4 years from your own effective date of completion.
Why specialist help is recommended
MDR claims involve HMRC's detailed tests for what constitutes a dwelling, annexe case law, and the interaction with the higher-rate surcharge. These are not DIY-friendly claims.
The potential saving on a £600,000 property with a qualifying annexe can exceed £20,000 — and with the claim window closing, getting the assessment and submission right first time matters. A specialist can confirm eligibility quickly and frame the claim to HMRC's tests.
Frequently asked questions
Can I still claim Multiple Dwellings Relief?
Only if your transaction completed before 1 June 2024. MDR was abolished for transactions completing on or after that date. If you completed before 1 June 2024 and did not claim MDR at the time, you may still be entitled to an overpayment relief claim — but you have only 4 years from the effective date to do so.
When was Multiple Dwellings Relief abolished?
MDR was abolished for SDLT transactions with an effective date on or after 1 June 2024. Transactions completing before that date are unaffected and can still be reviewed for a claim within the 4-year overpayment relief window.
What counts as a self-contained dwelling for MDR?
HMRC’s test was whether the subsidiary dwelling had its own entrance, kitchen or cooking facilities, and bathroom, and could function independently of the main house. It did not need to be on a separate legal title. An annexe or granny flat meeting these tests typically qualified.
How much could an MDR claim be worth?
It depends on the purchase price and the number of dwellings. On a £600,000 property with a qualifying self-contained annexe, the saving could exceed £20,000, because SDLT is calculated on the average price per dwelling rather than the full price.
Don't Let the Window Close
If you bought a property with an annexe or multiple dwellings before June 2024, check your claim now.