Multiple Dwellings Relief is a relief you can claim when you buy multiple dwellings. Dwellings are buildings or part of a building that is suitable for use as a single dwelling or is in the process of being constructed for such use.
This relief is not just for purchases for property portfolio but it is also applicable for large houses that has annexes or the so called ‘granny flats’. A self-contained annexe could fall into the definition of a dwelling in its own right, therefore, Stamp Duty relief can be claimed.
Brian buys a house without an annexe for £2m. The calculated Stamp Duty on this is £153,750. If the same house that Brian has bought has an annexe or a granny flat, then Multiple Dwellings Relief could apply. The calculated Stamp Duty will then only be £87,500. That is a saving of £66,250.
You can amend your tax return and apply for a refund after 12 months of the filing date. If you had bought a house with an annexe in 31 May 2016, you have until the end of June 2017 to amend your tax return.