The Government had previously consulted in relation to mixed property transactions (where a purchase comprises both residential and non-residential property), and Multiple Dwellings Relief (MDR), which is a relief which can apply where a property comprises two or more dwellings.
The Chancellor announced that legislation will be introduced to abolish MDR with effect from 1 June 2024. This does mean that there is a ‘window of opportunity’ of just under 3 months whereby those who exchange contracts and complete purchases comprising multiple dwellings before 1 June will still be able to qualify for relief – we would envisage there being some very busy solicitors! It is also worth noting that where contracts have been exchanged on or before 6 March 2024, MDR can still be claimed regardless of when the transaction ultimately completes.
On a more positive note, the Government had confirmed that it will not take forward any changes to the rules relating to mixed property transactions. This means that the (typically lower) non-residential rates of SDLT will continue to apply to transactions which comprise both residential and non-residential property.
A very minor change will also be made to First Time Buyer’s Relief, ensuring that this relief can be claimed by an individual acquiring leasehold residential property through a nominee or bare trustee.
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