LTT multiple homes relief: how the homes part is calculated
How the MDR homes calculation works
For an LTT multiple homes relief claim, tax is first worked out on the average amount allocated to each home. That result is then multiplied by the number of homes.
- Split the price fairly between homes and other property.
- Include linked purchases where required.
- Check the date-sensitive minimum tax amount.
Scroll down for the full analysis.
Read the original guidance here:
LTT multiple homes relief: how the homes part is calculated
When you buy two or more homes in Wales, multiple dwellings relief (MDR) can change your Land Transaction Tax bill. People often call it stamp duty, but the Welsh tax is LTT. The key idea is simple: calculate tax on an average home price, then multiply it up.
What this rule is about
MDR does not simply reduce the price by a fixed percentage. Instead, MDR changes the way LTT works when a qualifying purchase includes at least two homes.
The calculation has two possible parts. One covers the amount paid for the homes. The other covers any amount paid for other property in the same deal, such as commercial space or land that is not part of a home.
This page explains the first part only. That is usually the part that does most of the work.
What the official source says
The Welsh Revenue Authority says that, after an MDR claim, the LTT bill totals the tax on the homes part and, if there is any, the tax on the remaining part.
- First, add up the amount allocated to all the homes included in the calculation.
- Divide that total by the number of homes.
- Work out LTT on that average figure as if it were one home purchase.
- Use the residential rates that apply to that notional purchase.
- Multiply that tax result by the number of homes.
- For a linked purchase, complete one further calculation.
The allocation must be just and reasonable. In everyday terms, it needs to be a fair split between the homes and anything else being bought.
For linked purchases, use the total amount allocated to the homes across the linked deals. You then divide the tax result between those deals in proportion to the homes amount in each one.
- For the purchase you are calculating, CD means the amount allocated to homes.
- TDC means the total amount allocated to homes across the relevant linked purchases.
- The final homes figure for that purchase is the earlier tax result multiplied by CD ÷ TDC.
- A linked deal can affect the result even where it is not itself a qualifying MDR purchase.
There is also a minimum tax check. The source says that an effective date before 13 February 2026, or a deal covered by the stated transitional rules, uses a 1% minimum. For effective dates on or after 13 February 2026 that are not covered by those rules, it uses a 3% minimum.
That minimum can replace a lower result. It is not optional.
The source also highlights a point for larger purchases. If you buy six or more homes in one transaction, an MDR claim means the homes use the higher residential rates. Without an MDR claim, the total price instead uses non-residential rates.
What this means in practice
Start with the amount that properly belongs to the homes. Do not automatically use the full price if the deal also includes other property.
Then average that homes amount. The relief can help because the LTT bands apply to a lower, notional price before you multiply the answer by the number of homes.
- Keep a clear breakdown of what you are buying.
- Separate the price for homes from the price for other property.
- Check whether another deal with the same buyer and seller is linked.
- Use the rate set that applies to the notional purchase, not simply the rate you expect for the whole deal.
- Run the minimum tax check after the main calculation.
- Add any tax due on the remaining part of the purchase.
The WRA provides an MDR calculator. It may help with the arithmetic, but it cannot decide whether your allocation is fair or whether separate deals are linked. Those answers depend on the facts.
How to analyse it
Work through the questions in this order. If you calculate the average first, before sorting out the property and linked deals, you can get the wrong answer.
- Does the purchase fall within the scope of MDR?
- How many homes are included in the calculation?
- Is any part of the price for other property?
- What is a fair split of the total price?
- Are there linked purchases that must be included?
- What is the total homes amount across those purchases?
- What tax would apply to the average amount?
- Does the higher residential rate apply to that notional purchase?
- Does the minimum tax check produce a higher result?
- Is there a separate remaining amount that also attracts LTT?
If you only remember one thing, make it this: do not calculate linked purchases one by one and then ignore them. The wider group can change the average and the share assigned to each purchase.
Example
Here is an illustration using simple figures. Sam buys two homes for a total amount of £500,000. There is no other property in the deal, so the full £500,000 goes to the homes.
Sam divides £500,000 by two. The notional single-home purchase is therefore £250,000. Assume the LTT calculation for that notional purchase, using the rates that apply on the date, produces £3,000. Multiplying by two gives £6,000.
If Sam’s effective date is on or after 13 February 2026 and no transitional rule applies, the 3% minimum is £15,000 of the £500,000 homes amount. That higher figure replaces the £6,000 result.
The example does not state the LTT rates for a £250,000 purchase. It assumes a result only to show how the averaging and minimum check work.
Why this can be difficult in practice
The arithmetic is usually straightforward. The difficult part is deciding what goes into it.
You might think the price in the contract settles the split. It does not always. When a deal includes shops, offices, farmland, parking, or other assets, the homes share may need proper valuation support.
- Calling part of a site a garden does not by itself settle the allocation.
- A low price for one home may need an explanation if it affects the average.
- Separate contracts can still be linked if they form one arrangement or series.
- Buying six or more homes does not produce the same result with and without an MDR claim.
- The minimum percentage depends on the effective date and transitional position.
- The guidance refers to transitional rules without setting out every condition on this page.
These are the points that can decide a large tax difference. Good records matter because they show how the figures were reached.
Key takeaways
- MDR starts by averaging the amount allocated to the homes.
- Linked purchases need a further proportioning calculation.
- Check the minimum tax rule and the effective date before relying on the result.
Technical analysis
For advisers, and for anyone who wants to check the law behind this page. You do not need this section to understand the guidance above.
Legislation
- LTTA 2017 section 8 — when land purchases count as linked transactions
- LTTA 2017 section 27 — calculating tax using the applicable tax bands
- LTTA 2017 section 29 — relief calculations override normal tax calculation rules
- LTTA 2017 section 72 — six or more homes normally treated as non-residential
- LTTA 2017 Schedule 13 para 3 — purchases that can fall within multiple homes relief
- LTTA 2017 Schedule 13 para 4 — splitting the amount paid between homes and other property
- LTTA 2017 Schedule 13 para 5 — the two parts that make up tax with relief
- LTTA 2017 Schedule 13 para 6 — working out tax on the part allocated to homes
Official guidance
The pages below are the Welsh Revenue Authority’s guidance. Guidance is not law. It sets out how the Welsh Revenue Authority reads the legislation, and it is not binding on you, on a tribunal or on a court. Where guidance and the legislation differ, the legislation wins. the Welsh Revenue Authority can also change or withdraw guidance, and it may not cover your facts.
Where this is not settled
- Whether an amount is fairly allocated to homes rather than other property can depend on the facts and valuation evidence.
- The supplied source refers to transitional rules in LTTA/7036b, but does not set out their full terms.
- The correct rates for the notional purchase depend on the transaction facts and the rates in force on its effective date.
Evidence you would need
This kind of case is decided on the facts of the individual property. These are the records that usually settle it, and the ones an adviser would ask you for.
- The contract and completion statements for every linked purchase
- A schedule identifying each home included in the claim
- The total amount paid and any amount allocated to other property
- Valuation evidence supporting the proposed split
- The effective date and any facts relevant to transitional rules
Explore this with an AI
Readers often want to test their own situation. Copy the prompt below into ChatGPT, Claude or Gemini. It hands the model the actual legislation for this page rather than letting it answer from memory, and tells it to be explicit about what is uncertain. What comes back is information, not advice – check it against the links above.
I am researching Land Transaction Tax (LTT), the tax on property in Wales. It replaced Stamp Duty Land Tax in Wales on 1 April 2018, and SDLT does not apply in Wales. MY QUESTION LTT multiple homes relief: how the homes part is calculated [Replace this with your own situation: what you are buying, the price, the dates, who the buyer is, and what you plan to do with the property.] THE LAW THIS TURNS ON - LTTA 2017 section 8 - when land purchases count as linked transactions https://www.legislation.gov.uk/anaw/2017/1/section/8 - LTTA 2017 section 27 - calculating tax using the applicable tax bands https://www.legislation.gov.uk/anaw/2017/1/section/27 - LTTA 2017 section 29 - relief calculations override normal tax calculation rules https://www.legislation.gov.uk/anaw/2017/1/section/29 - LTTA 2017 section 72 - six or more homes normally treated as non-residential https://www.legislation.gov.uk/anaw/2017/1/section/72 - LTTA 2017 Schedule 13 para 3 - purchases that can fall within multiple homes relief https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/3 - LTTA 2017 Schedule 13 para 4 - splitting the amount paid between homes and other property https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/4 - LTTA 2017 Schedule 13 para 5 - the two parts that make up tax with relief https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/5 - LTTA 2017 Schedule 13 para 6 - working out tax on the part allocated to homes https://www.legislation.gov.uk/anaw/2017/1/schedule/13/paragraph/6 Guidance page from the Welsh Revenue Authority on this topic (guidance, not law): https://www.gov.wales/land-transaction-tax-relief-acquisitions-involving-multiple-dwellings-technical-guidance#7274 HOW I WANT YOU TO ANSWER 1. Work from the legislation above. Read it before answering. Guidance from the Welsh Revenue Authority is its view of the law, not the law, and does not bind a tribunal or a court. 2. Tell me what the rule actually requires, in plain English. 3. Tell me which facts decide the answer, and which facts would change it. 4. Tell me what evidence I would need to support the position. 5. Be explicit about anything unsettled or fact-sensitive. Do not guess. 6. Your training data has a cutoff and SDLT rates and reliefs change at fiscal events. Say so if you are not sure the law is current. POINTS ALREADY KNOWN TO BE UNCERTAIN ON THIS TOPIC - Whether an amount is fairly allocated to homes rather than other property can depend on the facts and valuation evidence. - The supplied source refers to transitional rules in LTTA/7036b, but does not set out their full terms. - The correct rates for the notional purchase depend on the transaction facts and the rates in force on its effective date. Do not give me a conclusion you cannot support from the provisions above.
Legislation links show the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 as it stood on 2025-11-17. The law may have changed since, and the rules that apply are those in force on the date of your transaction. The official guidance this page is based on is here.
This page was last updated on 3 September 2026
Useful article? You may find it helpful to read the original guidance here: LTT multiple homes relief: how the homes part is calculated
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