There are current savings available when you purchase more than one dwelling in one transaction, which includes houses with annexes. Multiple dwelling relief brings significant savings on the Stamp Duty Land Tax (SDLT) payable. For example a house purchased at £2.5m which included an annexe, could save £78,750! See below for a breakdown.
House (no annexe) £2,500,000 | House with annexe £2,500,000 |
SDLT payable | SDLT payable |
House £211,250 | House £66,250 |
Annexe £66,250 | |
Total £211,250 | Total £132,500 |
Saving £211,250 - £132,500 = £78,750 |
Under the latest budget, it was announced that this tax relief would be removed with effect from 1st June 2024, so the difference in purchase costs either side of this date amounts to more than 3% of the purchase price. If you are purchasing a property with multiple dwellings, even if only an annexe to the main property, a prompt completion of the transaction ahead of 1st June will significantly impact your total buying costs. For more, please contact us on hello@ottershomesearch.com