Property Taxation
Multiple Dwellings Relief (MDR)
MDR is a relief from Stamp Duty Land Tax (SDLT) that applies to bulk purchases of properties. The Government has concluded that it does not achieve its intended objective and is open to abuse, so it will be abolished for transactions with an effective date on or after 1 June 2024. Transitional rules mean that MDR can still be claimed for contracts exchanged on or before 6 March 2024, regardless of when completion takes place. This is subject to various exclusions, for example if there is a variation in the contract after that date.
First-time Buyers’ Relief
First-time buyers can claim relief from SDLT on certain property purchases. From 6 March 2024, someone buying a property using a nominee or bare trust arrangement will be able to claim the relief, and someone who has used such an arrangement in the past will not be treated as a first-time buyer, so they will not be able to claim the relief.
Annual Tax on Enveloped Dwellings (ATED)
ATED applies to residential property worth above £500,000 that is owned through companies and other corporate structures, unless the situation qualifies for a relief. The rates increase automatically each year with inflation and will rise by 6.7% from 1 April 2024, in line with the September 2023 Consumer Prices Index.