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An individual purchases the freeholds of four houses in one transaction and the freeholds of two shops in a separate linked transaction. »Ê¹ÚÌåÓýapp total linked transaction value is £1,500,000.

»Ê¹ÚÌåÓýapp transaction involving the houses is a relevant transaction for the purposes of the relief. Two of the houses cost £250,000 and two cost £350,000 so the dwellings on which MDR can be claimed have a value of £1,200,000 and the SDLT should be based on this figure. This is calculated based on £1,200,000 divided by 4. »Ê¹ÚÌåÓýapp tax is calculated on this figure and then multiplied by 4. »Ê¹ÚÌåÓýapp higher rate for additional dwellings will be applicable as the transaction consists of major interests in dwellings. More information about the higher rate can be found at SDLTM09730. »Ê¹ÚÌåÓýapp non-resident rates of SDLT may also be applicable if the individual is not UK resident. More information about the non-resident rates can be found at SDLTM09860.

»Ê¹ÚÌåÓýapp transaction involving the shops is not a relevant transaction for the purposes of the relief. »Ê¹ÚÌåÓýapp shops cost £150,000 each so the non-residential element totals £300,000, however we calculate the tax on this sum based on the total linked transaction value of £1,500,000. »Ê¹ÚÌåÓýapp total tax on £1,500,000 should be apportioned to the non-residential consideration of £300,000, i.e. calculate the tax due on the £1,500,000 then multiply by 20% to arrive at the tax due.