Spring Budget 2024 – SDLT multiple dwellings relief abolished

Chanceller of the Exchequer Jeremy Hunt announced as part of his 2024 Spring Budget on Wednesday 6 March 2024 that the government will abolish SDLT multiple dwellings relief for property transactions with an effective date on or after 1 June 2024.

Multiple dwellings relief is an SDLT relief that – subject to meeting certain conditions – is available for connected land transactions involving multiple dwellings.

Multiple dwellings relief was introduced in 2011 in an attempt to encourage investment in residential property and to promote private rental sector housing supply. However, following an external evaluation, the current government has concluded that there is no strong evidence to show that the relief is meeting its original objectives in a cost-effective way.

Multiple dwellings relief will therefore no longer be available to purchasers of most land transactions with an effective date on or after 1 June 2024.

Some transitional arrangements have been put in place. If contracts have been exchanged on or before 6 March 2024 (regardless of when those contracts complete, so long as there is no variation of the contract after 6 March 2024) or if substantial performance of any contract exchanged after 6 March 2024 occurs before 1 June 2024, then multiple dwellings relief can still be claimed.

Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.  

Author: Philip Mundy