Landlords will lose £385m of tax breaks tomorrow when the Treasury ends multiple dwellings relief.
The move, announced by the Chancellor in the March Spring Budget, means that multiple dwellings relief for people buying more than one property will be abolished on 1 June.
Hunt said in his statement that this part of the stamp duty tax regime was “regularly abused,” adding that the measure had shown “no evidence of promoting investment in the private rented sector”.
The Treasury adds that under transitional rules multiple dwellings relief “can still be claimed for contracts which are exchanged on or before 6 March 2024, regardless of when completion takes place”.
The measure was first introduced in 2011.
Primas Law real estate solicitor Ann-Marie Daly says: “Multiple dwellings relief is a stamp duty tax relief applicable to both individuals and businesses. It offers a reduction in stamp duty when buying two or more dwellings in a transaction.
“Under multiple dwellings relief, stamp duty is calculated based on the average value of the dwellings acquired, rather than assessing each one separately.
“This change will impact property owners and investors engaged in bulk property transactions, as each dwelling will now be subject to individual assessment.
“For transactions where contracts were exchanged on or before the 6 March 2024, multiple dwellings relief may still apply, provided there is no alteration to the contract after that date, even if completion occurs after the 1 June 2024.
Day adds: “If contracts are exchanged after 6 March 2024 and are substantially completed before the 1 June 2024, multiple dwellings relief might still be available.
“While multiple dwellings relief has been abolished in the Spring Budget, there is no change to the existing rule for transactions involving the purchase of six or more residential properties.
“Transactions of this nature are not treated as residential properties and instead, the non-residential property stamp duty rates will apply, however, this relief will still represent a loss of value in comparison to multiple dwellings relief.”
