SCHEDULE 15Stamp duty land tax: partnerships
F1Part 3Transactions to which special provisions apply
Transfer of partnership interest pursuant to earlier arrangements
17
(1)
This paragraph applies where—
(a)
there is a transfer of a chargeable interest to a partnership (“the land transfer”);
(b)
the land transfer falls within paragraph (a), (b) or (c) of paragraph 10(1);
(c)
there is subsequently a transfer of an interest in the partnership (“the partnership transfer”);
(d)
the partnership transfer is made—
(i)
if the land transfer falls within paragraph 10(1)(a) or (b), by the person who makes the land transfer;
(ii)
if the land transfer falls within paragraph 10(1)(c), by the partner concerned;
(e)
the partnership transfer is made pursuant to arrangements that were in place at the time of the land transfer;
(f)
the partnership transfer is not (apart from this paragraph) a chargeable transaction.
(2)
The partnership transfer—
(a)
shall be taken for the purposes of this Part to be a land transaction;
(b)
is a chargeable transaction.
(3)
The partners shall be taken to be the purchasers under the transaction.
(4)
The chargeable consideration for the transaction shall be taken to be equal to a proportion of the market value, as at the date of the transaction, of the interest transferred by the land transfer.
(5)
That proportion is—
(a)
if the person making the partnership transfer is not a partner immediately after the transfer, his partnership share immediately before the transfer;
(b)
if he is a partner immediately after the transfer, the difference between his partnership share before and after the transfer.
(6)
The partnership transfer and the land transfer shall be taken to be linked transactions.
(7)
Paragraphs 6 to 8 (responsibility of partners) have effect in relation to the partnership transfer, but the responsible partners are—
(a)
those who were partners immediately before the transfer and who remain partners after the transfer, and
(b)
any person becoming a partner as a result of, or in connection with, the transfer.