Two for the price of one?

Samara Goeieman considers the circumstances in which a property and its annexe will be eligible for multiple dwellings relief

Multiple dwellings relief is available for purchasers of residential property who acquire interests in more than one dwelling at the same time. The purpose of the relief is to reduce the rate of stamp duty land tax on the purchase of more than one dwelling, making it closer to the rate that would apply if the dwellings were purchased independently.

Where a transaction, scheme, arrangement or series of linked transactions includes multiple dwellings, the rate of tax charged in respect of those dwellings is determined by the mean consideration: that is, the total consideration attributable to the dwellings, divided by the number of dwellings. However, the relief cannot be such as to reduce the tax payable to less than 1% of the total consideration.