The Welsh government will not scrap Multiple Dwelling relief (MDR) for landlords, recognising evidence raised by trade body Propertmark.
It has been confirmed that The Land Transaction Tax Regulations 2025 will take effect on 7 February with changes to the tax relief without abolishing it.
This will see taxpayers unable to claim MDR for multiple dwelling transactions subject to Land Transaction Tax main residential rates if the Subsidiary Dwelling Exception applies.
The latter applies to main dwellings and one or more additional dwellings, such as homes with an annex, purchased in a singular transaction.
This change will limit MDR use to landlords as designed, with the Welsh Government hoping this will increase Land Transaction Tax revenues by between £1m and £2m a year.
However, Propertymark is pushing for more support for Welsh landlords widely.
Propertymark added: “Perhaps the biggest impact on the supply of homes in the PRS is the UK Government’s decision to phase out Mortgage Interest Relief and other tax deductibles as part of Section 24 of the Finance Act 2015.
“While most tax levers continue to be within the competence of the UK Government, we strongly recommend that the Welsh Government reduces the higher rates of LTT on residential property to stimulate increased investment and calls for a reversal of the phasing out of Mortgage Interest Relief.”
