SDLT on Development Land

SDLT on land sits on top of the bid. Bare land bought by a company or higher-rates payer attracts the residential 5 percent additional-dwellings surcharge if the seller treats it as residential. Bare land with a current commercial use is non-residential. Multiple Dwellings Relief was abolished from 1 June 2024.

Non-residential vs residential

Bare land with consent for residential development: HMRC treats as residential at completion.
Land with existing commercial use at completion: non-residential.
Mixed-use at completion: non-residential (lower top rate).

Six-or-more-dwellings rule

Where six or more dwellings are bought in a single transaction the buyer may elect for non-residential rates. Lower top rate, no 5 percent surcharge. Common on portfolio acquisitions.

MDR abolition

Multiple Dwellings Relief abolished from 1 June 2024. Linked-transaction rules still apply but the per-dwelling averaging benefit is gone.

Devolved nations

Scotland uses LBTT (Revenue Scotland) with ADS supplement. Wales uses LTT (Welsh Revenue Authority). Northern Ireland uses UK SDLT. See the cross-jurisdiction compare page.