This worked example is for illustrative purposes only.
BRMC Developers Limited decides to purchase 5 flats in one transaction to add to their portfolio. The overall purchase price is £2 million. As the whole transaction comprises dwellings, a just and reasonable apportionment of the purchase price for the purposes of applying the ADS is not necessary. The whole purchase price of the transaction will therefore be considered to be "relevant consideration" for the purposes of the ADS.
In this case, residential rates of LBTT will apply to the total consideration of £2 million, resulting in £198,350 being charged.
Additionally, a 4% charge is made on the whole of the purchase price (the "relevant consideration") resulting in an ADS charge of £80,000 being made.
The overall LBTT liability for the transaction is therefore £278,350 (£198,350 plus £80,000), before multiple dwellings relief, which may be claimed.