A new relief is available from 19 July 2011 that will reduce stamp duty payable if you are purchasing more than one residential property in a single transaction.
Instead of paying SDLT based on the full value of properties added together, the aggregate value, you can claim to pay SDLT based on the full value on the properties divided by the number of properties purchased, the average value.
Where your claim is accepted this could result in a considerable saving.
Claims cannot reduce the overall SDLT charge below 1%.
Transactions covered by the relief are either of the following. Apologies for the complex phrasing, the definitions are copied from HMRC notes:
- A transaction, the main subject-matter of which includes interests in more than one dwelling,
- A transaction which is one of a number of linked transactions, the main subject-matter of which includes interests in at least one dwelling and where one or more transactions linked to it includes interests in at least one other dwelling.
As you can no doubt appreciate there are a number of grey areas but do seek advice if you are making multiple property purchases after 19 July 2011, savings may be worth the effort involved..