If you are purchasing a residential property, and it has an annex or similar within the grounds, you may be able to qualify for a reduction in stamp duty, called ‘Multiple Dwellings Relief’ (MDR).

MDR is available if the annex is capable of being used as a dwelling – it needs its own access, electricity, heating, bathroom, and kitchen facilities in order to qualify. It doesn’t have to actually be used as a dwelling, but must be capable of being used as such on the date of purchase.
If your property qualifies, the reduction in stamp duty can be significant, as you qualify for an additional nil rate threshold for each dwelling
As an example, a property purchased for £ 1.3m could qualify for a Stamp Duty Land Tax saving of £32,000.

How Jerroms can support you

If you are considering purchasing a property with an annex, or purchased one in the last 12 months and didn’t apply this relief, please get in touch.