The government should introduce a new and better version of Multiple Dwellings Relief (MDR) if it wants to increase stamp duty receipts, according to stamp duty specialist SCA Tax.
MDR allowed buyers of multiple dwellings to pay a single transaction of stamp duty until it was abolished from June 2024, amid disputes of what qualifies as a separate dwelling.
SCA Tax recommended bringing it back in a “clearer, modernized form”, which would allow companies and landlords to invest efficiently in multi-unit properties.
The firm also recommended reducing stamp duty for companies or landlords buying vacant, dilapidated, or converted units – because that increases supply.
Sean Swimby, director at SCA Tax, said: “The government’s challenge is clear: they need revenue from stamp duty land tax, but the current system is blocking the very transactions that would produce it. A relief-led approach is the most effective way to increase activity and total receipts while supporting landlords, companies and the broader housing market.
“This is not about removing stamp duty land tax; it’s about modernising it. By expanding and refining reliefs, particularly for landlords and limited companies, the government can stimulate investment, improve housing supply, and increase revenue, all without exposing households to long-term debt or complex financing schemes.”
Stamp duty could also be cut for properties requiring refurbishment or EPC improvement, provided works are completed within a set timeframe – to encourage creating energy efficient stock.
Meanwhile there could be clearer statutory rules for when stamp duty is chargeable or relieved during company incorporation, reducing uncertainty and enabling restructuring.
SCA Tax argues that these changes would lower the tax per transaction but still result in more revenue for the government due to the higher total activity they would create.
Rather than cutting stamp duty entirely, SCA Tax suggested ‘modernising’ it.
Suggested ways were: introduce a small mobility charge for primary dwellings; maintain higher surcharges for second homes and investors; and offer time-limited reliefs for downsizers and those releasing family homes back into the market.