The abolition of Multiple Dwellings Relief for stamp duty has come into force, meaning investors who buy properties in bulk can no longer get a discount.
The policy, introduced in 2011, allowed investors who buy multiple or linked properties to pay stamp duty on the average price of each property.
However, it’s apparently done little to incentivise bulk purchases, while buyers have reportedly used it as a loophole by presenting one property as two to lower their stamp duty bill.
Ann-Marie Daly, real estate solicitor at Primas Law, said: “For transactions where contracts were exchanged on or before the 6th March 2024, MDR may still apply, provided there is no alteration to the contract after that date, even if completion occurs after the 1st June 2024.
“If contracts are exchanged after 6th March 2024 and are substantially completed before the 1st June 2024, MDR might still be available.
“While MDR has been abolished in the Spring Budget, there is no change to the existing rule for transactions involving the purchase of six or more residential properties.
“Transactions of this nature are not treated as residential properties and instead, the non-residential property SDLT rates will apply, however, this relief will still represent a loss of value in comparison to MDR.”
The government said abolishing the scheme would remove £385 million of tax breaks over the next five years.