Home › Forums › Patrick Cannon › 3% Surcharge, MDR and Linked Transactions › Reply To: 3% Surcharge, MDR and Linked Transactions
This is a good question and draws attention to the trap in the way the main residence exception works in a multiple dwelling transaction. The two properties could be bought together if the gardener’s cottage is worth less than ?40,000 (so that you fall outside paras 5 and 6 Sch 4ZA) or as you say the two properties could be bought in separate albeit linked, transactions so that para 5 does not apply and para 3 effectively exempts the purchase of the new main residence and the cottage falls outside the 3% charge on its own. If the gardener’s cottage was worth ?40,000 or more and this was a multiple dwellings purchase then you fall into para 5 which does not allow for a main residence replacement exception so that the 3% additional charge applies to the total consideration.