TC09626 - [2025] UKFTT 01067 (TC)

SDLT is a tax on ‘chargeable transactions’, that is ‘land transactions’ being the acquisition of a ‘chargeable interest’ which is not exempt (sections 42(1), 43(1), 48(1) and section 49(1)).

Except as otherwise provided, the effective date of a land transaction for SDLT purposes is the date of completion (section 119).

Section 55 governs the amount of SDLT chargeable in respect of chargeable transactions.

Schedule 6B provides for multiple dwellings relief – MDR – reducing the SDLT payable on chargeable transactions if the main subject-matter consists of an interest in at least two dwellings. Paragraph 2 of Schedule 6B provides so far as relevant:

“2(1) This Schedule applies to a chargeable transaction that is–

(a)

within sub-paragraph (2) or sub-paragraph (3), and

(b)

not excluded by sub-paragraph (4).

2(2) A transaction is within this sub-paragraph if its main subject-matter consists of–

(a)

an interest in at least two dwellings, or

(b)

an interest in at least two dwellings and other property.

2(3) …”

Paragraph 7 defines what amounts to a dwelling for the purposes of schedule 6B:

“(2)

A building or part of a building counts as a dwelling, if-

(a)

It is used or suitable for use as a single dwelling, or

(b)

It is in the process of being constructed or adapted for such use”.

Ms Wise took us to the background notes to the Finance Act 2003 as a guide to interpretation:

“18.

Clause 83 and Schedule 22 are designed to strengthen demand for residential property. They will reduce a barrier to investment in residential property, promoting the supply of private rented housing. They do so by reducing the amount of SDLT payable on a purchase of multiple dwellings, so that it is closer to that charged when purchasing those properties singly.”

However, we did not derive any assistance from these notes.

Similarly, we did not find any assistance in Ms Man’s brief suggestion that the reason for the abolition of MDR was due to abuse of the relief and the legislation should be applied accordingly. We must apply the legislation to the facts in this appeal.