Asha Ngai Partner
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24th May 2023 | Asha Ngai | residential, residential real estate
A residential property solicitor is often concerned with ensuring that the Stamp Duty Land Tax (SDLT) is never underpaid. They also hold an equally important duty to ensure their client does not overpay on SDLT.
One of the instances in where this can happen is when a property is purchased with the benefit of an annex or several annexes.
Buyers can apply for multiple dwellings relief (MDR) where they buy more than one dwelling in a transaction and rather advantageously this relief is extended to properties with annexes.
To qualify as an annex, there are several criteria that must be met, and these are:
Should the criteria be met, the SDLT can be calculated so as to divide the total amount paid for the properties by the number of dwellings. The SDLT is then worked out on this figure and multiplied by the number of dwellings.
Solicitors must ensure they make the correct investigations on whether there is an annex by asking the surveyor, the estate agent and the seller’s lawyers.
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