MDR Benefit Calculator
Calculate the historical stamp duty saving from Multiple Dwellings Relief. This tool is for transitional and historical cases only — MDR cannot be claimed on contracts exchanged from 6 March 2024.
Last verified: March 2026
Multiple Dwellings Relief Was Abolished on 6 March 2024
This tool shows the historical benefit for eligible transitional cases only. New purchases cannot claim MDR. Only contracts exchanged before 6 March 2024 (with completion by 1 June 2024) may be eligible under transitional provisions. If you are planning a new purchase, you will pay standard SDLT on the full price.
Key Takeaways
- MDR was abolished on 6 March 2024 — only contracts exchanged before that date can potentially claim.
- MDR used an average-price method: SDLT calculated on the price per dwelling, then multiplied by the number of dwellings.
- A 1% minimum floor applied to prevent total SDLT falling below 1% of the total consideration.
- Transitional provisions allowed completion by 1 June 2024 where contracts were exchanged before 6 March 2024.
- Nothing has directly replaced MDR — bulk purchases now pay standard SDLT on the full aggregated price.
In this article
How to Use This Tool
- Enter the total purchase price for all dwellings combined
- Enter the number of dwellings being purchased (minimum 2)
- Select your buyer type (standard or additional property surcharge)
- Enter your contract exchange date to check eligibility
- Review the SDLT comparison: standard vs MDR, and the saving
- Check the per-dwelling breakdown and 1% floor status
Remember: This tool is for historical/transitional cases only. If your contract was exchanged on or after 6 March 2024, MDR cannot be claimed regardless of the result shown.
Important: MDR Abolished
Multiple Dwellings Relief (MDR) was a stamp duty relief that allowed buyers of multiple residential properties in a single transaction to calculate SDLT based on the average price per dwelling rather than the total. This significantly reduced the tax bill, especially for investors buying portfolios of flats or houses.
The relief was abolished by HMRC with effect from 6 March 2024 (the date of the Spring Budget 2024). The government's stated reason was that MDR was being widely used for tax avoidance purposes and was not delivering its intended policy goal of incentivising housing supply.
Key Dates
- Before 6 Mar 2024:Fully eligible for MDR
- 6 Mar – 31 May 2024:Transitional: only eligible if original contract was exchanged before 6 March 2024
- From 1 Jun 2024:MDR fully abolished, no transitional relief available
MDR Benefit Calculator
Combined price for all dwellings
Minimum 2 dwellings for MDR
For eligibility check
Standard SDLT (no MDR)
£20,000
On full £600,000
MDR SDLT
£6,000
1% floor applied (calculated MDR was £4,500)
Potential Saving with MDR
£14,000
Per-Dwelling Breakdown
| Item | Amount |
|---|---|
| Total purchase price | £600,000 |
| Number of dwellings | 3 |
| Average price per dwelling | £200,000 |
| SDLT per dwelling (MDR method) | £1,500 |
| Total MDR (before floor) | £4,500 |
| 1% minimum floor | £6,000 (applied) |
| Final MDR SDLT | £6,000 |
| Standard SDLT | £20,000 |
| MDR Saving | £14,000 |
Understanding Your Results
Standard SDLT
The stamp duty payable without MDR: calculated on the total purchase price using standard residential SDLT bands. This is what all buyers of multiple dwellings now pay.
MDR SDLT
The stamp duty that would have been payable under MDR: calculated on the average price per dwelling, then multiplied by the number of dwellings. Because lower prices attract lower marginal rates, this is almost always less than the standard calculation.
1% Floor
HMRC introduced a minimum floor of 1% of total consideration to prevent MDR being used to virtually eliminate stamp duty on purchases of many low-value units. If the MDR calculation produces a figure below 1% of the total price, the floor applies.
How MDR Worked
Multiple Dwellings Relief was introduced to make it more tax-efficient to purchase multiple residential properties in a single transaction. The average price method worked as follows:
- Calculate the average price: divide total consideration by number of dwellings
- Calculate SDLT on the average price: using standard residential bands
- Multiply by dwelling count: to get total MDR tax
- Apply the 1% floor: if total MDR is less than 1% of total consideration, use 1% instead
The benefit arises because property prices progress through bands non-linearly. A single £600,000 purchase attracts higher marginal rates on the upper portion, while three £200,000 purchases each stay within lower bands, producing a significantly smaller aggregate bill.
Note: MDR also applied to the additional 5% surcharge — additional property buyers calculated the surcharge per dwelling on the average price rather than the full price, compounding the saving.
Transitional Rules
When MDR was abolished in the Spring Budget on 6 March 2024, a transitional provision protected buyers who had already exchanged contracts. The rules were:
Contracts exchanged before 6 March 2024
MDR fully available, regardless of completion date. No deadline on completion.
Contracts exchanged 6 March – 31 May 2024
MDR not available unless the contract was a renegotiation or variation of a pre-6 March contract. Seek professional advice.
Contracts exchanged from 1 June 2024
No MDR available under any circumstances. Standard SDLT applies to the full consideration.
Worked Examples
Example 1: 3 Flats — Eligible (February 2024)
Total price: £600,000 | 3 flats | Exchanged: Feb 2024 | Standard buyer
Average price per flat: £200,000
SDLT per flat (MDR): £1,500 | Total MDR: £4,500
Standard SDLT (full £600k): £17,500
Saving: £13,000 (74% reduction)
Example 2: 2 Houses — Eligible (January 2024)
Total price: £800,000 | 2 houses | Exchanged: Jan 2024 | Standard buyer
Average price per house: £400,000
SDLT per house (MDR): £7,500 | Total MDR: £15,000
Standard SDLT (full £800k): £27,500
Saving: £12,500 (45% reduction)
Example 3: 5 Units — Not Eligible (May 2024)
Total price: £400,000 | 5 units | Exchanged: May 2024 | Standard buyer
Not eligible — contract exchanged after abolition date (6 March 2024). Standard SDLT of £7,500 applies to full £400,000.
Frequently Asked Questions
Can I still claim Multiple Dwellings Relief?
MDR was abolished on 6 March 2024. Only transactions where contracts were exchanged before that date (with completion by 1 June 2024) can claim under transitional provisions. No new claims are possible for contracts exchanged from 6 March 2024.
What replaced Multiple Dwellings Relief?
Nothing directly replaced MDR. The government abolished it after finding it was mainly used for tax avoidance rather than supporting housing supply. Bulk purchases now pay standard SDLT on the full price.
What is the 1% minimum floor?
Even with MDR, total SDLT cannot be less than 1% of the total consideration. This prevents extremely low tax bills when purchasing many low-value units. The calculator automatically applies this floor to show the correct MDR amount.
Can I amend a past return to claim MDR retrospectively?
You can amend an SDLT return within 12 months of the filing date. If your transaction was eligible (contracts exchanged before 6 March 2024) and you did not claim MDR at the time, you may be able to amend. Seek professional advice before submitting an amendment.
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.