In this week’s Q&A, Roger Bradbury, tax advice consultant at Croner-i, explains how multiple dwellings relief (MDR) rules apply to property buyers in Wales in light of subsidiary dwelling status
My client is buying a large house with two separate cottages within the same grounds located in Wales and we are satisfied that there are three separate dwellings for land transaction tax (LTT) purposes. They intend that the main house will be let residentially, with the two cottages to be used as holiday lettings.
While multiple dwellings relief (MDR) continues to be available under LTT in Wales, a change to the legislation in February 2025 may restrict relief in such cases involving ‘subsidiary’ dwellings purchased with another main dwelling.
Can you please clarify whether the relief can be claimed in my client’s case based on these circumstances?
The values of the respective properties are as follows:
