SDLT relief for multiple dwellings
You can claim relief when you buy more than one dwelling where a transaction or a number of linked transactions include freehold or leasehold interests in more than one dwelling.
If you claim relief, to work out the rate of tax HMRC charge:
divide the total amount paid for the properties by the number of dwellings
work out the tax due on this figure
multiply this amount of tax by the number of dwellings
The minimum rate of tax under the relief is 1% of the amount paid for the dwellings.
Find out more in the HMRC SDLT manual.
Example
You buy 5 houses for £1 million.
£1 million divided by 5 is £200,000.
The amount of SDLT you pay on £200,000 is £1,500 (0% of £125,000 + 2% of £75,000).
£1,500 multiplied by 5 is £7,500.
As this is less than 1% of £1 million (which is £10,000), the amount of tax you pay is £10,000