Anyone who used MDR (Multi Dwelling Relief) on a property with granny annex to reduce stamp duty...

PeterPuffin

Has this led to your local council moving from 1 to 2 council tax bills?

I am trying to understand if a retrospective MDR would trigger the council to review my property and start charging us 2 council tax bills.

Background:

• property bought in Sept 2023, so I still have 2 months to apply for MDR retrospectively

• council already increased the council tax band to the next one up, in light of improvements made since the last sale (namely, kitchen extension and annex on a side). So they have already reviewed my house and did not see it as a separate dwelling.

• I spoke to a solicitor and they think that despite lacking a separate entrance (you need to go through the main door, then kitchen, to get into the annex), all key elements are there, so it's likely to qualify for MDR and save some £ in stamp duty.

• I only want to ensure this would not trigger the council to revisit their previous assessment.

lincroft1710

Councils do not determine if a property comprises more than one dwelling nor do they increase bands, that falls to the Valuation Office Agency (Eng and Wales),who are part of HMRC or the Assessor (Scot).

Presuming you are in England and the VOA decided there was only one dwelling it is extremely doubtful they would change their mind without good reason..

mybestattempt

I think I would be more concerned that a claim for MDR might fail:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00415

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00425

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00430