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  • Does anyone have experience of applying SDLT Multi Dwelling Relief?

    We’ve been told by our solicitor our purchase should qualify, but everything I’m reading is giving me the fear that at some point in the future HMRC will decide they don’t agree and demand it back.

  • It is an area where there are loads of spurious claims and "reclaim agents" helping people to ask for sdlt back if they didn't claim mdr but could have done.

    How much non-residential will the property have and what is it?

    I think HMRC are looking at it but I'd be surprised if any change is retrospective

  • It is an area where there are loads of spurious claims and "reclaim agents" helping people to ask for sdlt back if they didn't claim mdr but could have done.

    How much non-residential will the property have and what is it?

    I think HMRC are looking at it but I'd be surprised if any change is retrospective

    So I’ve heard. If we decide to do it, we wouldn’t be applying retrospectively and there’s no agents involved. It’s simply that our conveyancing solicitor dealing with our purchase raised the point that it appears to qualify and is asking if we want to apply the relief when paying the SDLT on completion.

    The house is a Victorian semi which the previous owners extended to create a ground floor kitchen and a first floor annexe/granny flat. That annexe comprises a separate entrance from the drive, a kitchen, living room, bedroom, bathroom and conservatory (see floorplan). It’s completely self contained with its own gas boiler and electrics, but not sure about water supply. There is also access from the main house, but only via a door that’s lockable. So it seems to meet all of HMRC’s criteria for a separate dwelling I can find online. However no one is willing or able to give a definitive “yes, it qualifies “ when asked and as it’s a self assessment tax the responsibility is totally on us. What I don’t want is to apply it and then HMRC to then disagree at some point down the line and demand the money plus interest.

    We could pay a SDLT expert to advise, but the cost of that is about 20% of what we’d save, so a sizeable chunk and no guarantee even if they said yes that HMRC wouldn’t disagree anyway.

    What I want is a service from HMRC to allow me to proactively check if we qualify and for them to either give us a straight yes or no. But of course they won’t do that.

    Edit - ignore the red border on attached floorplan, it’s left over from something else.

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