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Learn about 2024 UK tax changes including the end of Multiple Dwellings Relief and increased SDLT rates and how they impact landlords and investors.
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Written by
Ben Luxon
PUBLISHED ON
Nov 13, 2024
Important: Multiple dwellings relief (MDR) has been abolished and can no longer be claimed for transactions which complete, or substantially perform, on or after 1 June 2024. Additionally, in the Autumn Budget 2024, the government increased buy to let stamp duty surcharge from 3% to 5% as of 31st October 2024.
In a changing tax climate, landlords who understand property tax regulations have a better shot at minimising costs and maximising returns. There have been a range of tax changes in 2024, making staying informed even more important, especially with the significant adjustments to SDLT Multiple Dwellings Relief (MDR).
These changes represent a fairly comprehensive overhaul of the existing landlord tax system and present an inevitable adjustment phase for landlords as we go into 2025 and beyond.
Thankfully, there are a range of helpful tools available to landlords who want to stay ahead of the curve.
Multiple Dwellings Relief provided tax relief for property investors who bought multiple residential properties in a single transaction or series of linked transactions. MDR effectively reduced Stamp Duty Land Tax (SDLT), which landlords paid on these acquisitions. The relief meant landlords could calculate SDLT instead of the whole purchase price - often saving them huge amounts of money.
For example, if a landlord bought three residential properties at £600,000, SDLT multiple dwellings relief would have applied to the SDLT calculation on the basis of an average property value of £200,000 instead of the full £600,000. That typically meant lower SDLT costs - allowing landlords to make more profit.
Use our free Multiple Dwellings Relief Calculator →
At least two residential properties had to be purchased together or in a series of linked transactions to qualify for the multiple dwellings relief. These qualifying properties could be standalone houses or multiple units in one building, such as flats or converted homes.
MDR benefited landlords with a long-term investment strategy by encouraging multiple properties to be purchased. Of note, SDLT multiple dwellings relief was not applicable to commercial properties or certain mixed-use buildings.
In a major change, SDLT Multiple Dwellings Relief was abolished as of the 1st of June 2024. This change has already led many landlords to rethink their investment strategies, as MDR was one of the most effective ways to reduce Stamp Duty Land Tax (SDLT) obligations.
As the tax environment becomes less favourable for large-scale property purchases, landlords now need to explore new tax planning strategies and adjust their purchasing patterns to remain profitable.
Landlord Studio can support landlords in adapting to these shifts by providing real-time financial insights and tracking property expenses to stay aligned with new tax regulations.
The abolishment of multiple dwellings relief isn’t the only major tax change to impact property investors in 2024. The 2024 Autumn Budget introduced several sweeping tax changes including a change to the SDLT surcharge for second homes, and capital gains tax adjustments.
Thankfully, the anticipated increase in Capital Gains Tax (CGT) on residential property sales did not occur.
The government has, however, aligned the main CGT rates with those currently applied to residential property, raising the basic CGT rate from 10% to 18% and the higher rate from 20% to 24%.
Effective 30 October 2024, the new CGT rates are as follows:
One of the major changes to impact property investors is the increase in the Stamp Duty surcharge for second homes and investment properties. As part of the Autumn Budget 2024, the additional dwellings surcharge increased from 3% to 5%SDLT effective from the 30th of October.
With this change, landlords will incur SDLT rates of:
And there are additional changes to these rates planned to be implemented in March of next year. Investors planning new property purchases may want to reassess their financials to ensure any deals lined up still make sense.
Use our free buy-to-let SDLT calculator →
The implementation of Making Tax Digital (MTD) is planned to be phased in from April 2026, but as part of the Autumn Budget, the Labour government committed to additional spending and landlords can have confidence that MTD for Income Tax will be going forward.
Landlords and investors who start preparing now will benefit later.
From 2026, landlords earning over £50,000 per year will be required to change how they track and report their finances, with digital tax records and quarterly updates. MTD will then be rolled out to landlords with income above £30,000 in 2027 and the government has announced plans to further lower this entry barrier to £20,000.
Landlord Studio makes digital record-keeping easy. Our integration with Xero and advanced financial reporting tools means all Landlord Studio users can meet their MTD requirements today for an easy transition to the new rules tomorrow.
Tensions around these tax changes may be high, but landlords can adjust with the right tools. Features in Landlord Studio can be of great help to landlords in managing expenses, complying with laws, and maximising tax reliefs:
Save time, manage compliance, and reduce accounting errors for streamlined, accurate digital record keeping. Create your free Landlord Studio account today.
With Multiple Dwellings Relief abolished, increased SDLT rates, the removal of key tax reliefs such as the Section 24 provision introduced in 2020, and Making Tax Digital for landlords on the horizon, it is becoming harder for investors to achieve their long-term financial goals through property investing.
Related: A Guide To Landlord Tax: Rates, Relief, and Changes 2024/25
Despite these changes, property remains an attractive investment opportunity should investors be able to find the ‘right’ opportunities for long-term capital gains. Landlords, however, now more than ever, need the right tools for the job. Keeping accurate and detailed financial records is not only vital for future tax compliance, but, with fewer reliefs and higher taxes, they are essential if landlords want to operate a sustainable cash-flowing business.
For landlords looking for a better way to manage their buy-to-let finances, Landlord Studio offers all the tools you need to stay on top of your finances and maximise revenue. Our award-winning income and expense tracking tools like bank feeds and our receipt scanner are paired with property management and compliance tools designed to help landlords stay compliant, reduce accounting errors, and increase profitability.
Create your free Landlord Studio account today and discover how Landlord Studio can help you run a more profitable and compliant buy-to-let business.
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Landlord Studio is an easy to use MTD compliant property management and accounting software designed for UK landlords.
Track income and expenses, run reports,, find and prescreen tenants, manage property maintenance, and more.
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