Multiple dwellings relief general guidance

Multiple dwellings relief (MDR) is available on most transactions that involve the purchase of more than one dwelling in a single transaction or in a series of linked transactions. The relief ensures the buyer does not pay LBTT at a higher rate than if bought separately and lower rate bands would have applied.

There is a prescribed minimum amount of LBTT in all MDR cases.

MDR will be available on most transactions that include multiple residential dwellings whether or not there is also non-residential property in one or more of the transactions.

For further guidance see:

Multiple dwelling relief technical guidance.

Multiple dwellings relief and the additional dwelling supplement (ADS)

Both multiple dwellings relief and the ADS relate to transactions which involve dwellings. This includes transactions with dwellings and additional property that is not classed as a dwelling.

Where the ADS is applicable, MDR may be available. MDR may also be available on the purchase of 6 or more residential properties bought in a single transaction even though these are relieved from the ADS and are treated as being non-residential.

Claiming MDR

Multiple dwellings relief can be claimed by:

• claiming the relief in the original LBTT return
• making an amendment to the LBTT return to claim the relief.

MDR cannot be claimed if crofting community right to buy relief is available on the transaction. MDR can also not be claimed if group relief, reconstruction relief and acquisition relief or charities relief is available for the transaction or was available and has been withdrawn from it.

The MDR can be withdrawn in full or in part should an event occur within a relevant period and, had the event occurred immediately before the effective date, the relief would not have been due.

You can read more on our website

Multiple dwellings relief general guidance | Revenue Scotland