Stamp duty land tax multiple dwellings relief and granny annexes

Is it cost-effective to live with one’s mother-in-law? Potentially the answer is yes. However the possible reliefs and consequent savings are complex and dependent on the individual facts of any situation. As such careful prior consideration of the facts and potential options needs to be undertaken. This article aims to shed some light on the position in relation to stamp duty land tax (SDLT) only. (Disclaimer: We offer no opinion on your well-being should you decide to take such a step.)

What is the potential saving?

An SDLT saving may be made if an individual buys a property which includes not only their main home but also separate and independent accommodation for the mother-in-law. In these circumstances it may be possible to pay SDLT by reference to the average price by claiming multiple dwellings relief (MDR) while simultaneously not incurring the 3% higher rate for...