SDLT and partnerships—anti-avoidance and reliefs
Produced in partnership with Kevin Griffin
SDLT and partnerships—anti-avoidance and reliefs

The following Tax guidance note Produced in partnership with Kevin Griffin provides comprehensive and up to date legal information covering:

  • SDLT and partnerships—anti-avoidance and reliefs
  • General anti-abuse rule
  • SDLT general anti-avoidance provisions
  • Withdrawal of value within three years of connected transfer
  • Pre-arranged transfer of partnership share
  • Transfer from corporate partnership
  • Approach of courts
  • Group relief
  • Other reliefs

This Practice Note gives details of stamp duty land tax (SDLT) anti-avoidance rules and SDLT reliefs which apply specifically to transactions of partnerships.

This Practice Note explains:

  1. how anti-avoidance rules of general application may apply to partnerships

  2. what additional anti-avoidance rules apply to partnership transactions, and

  3. how general reliefs apply to partnership transactions

In general, SDLT anti-avoidance rules and reliefs apply to partnerships as they would apply to the constituent partners. However, there are some modifications to the general provisions and some additional rules specifically directed at partnerships which are summarised below:

  1. the rules which apply to transfers of interests in property investment partnerships are essentially anti-avoidance measures

  2. if a chargeable interest is transferred from a corporate partnership to one of the partners, the normal treatment may be replaced by a requirement to claim group relief to remove the SDLT charge, and

  3. the withdrawal of value from a partnership by a partner may give rise to an SDLT charge if it occurs within three years of transfer of a chargeable interest to the partnership by a partner or connected person

In addition, the SDLT regime includes general anti-avoidance provisions, plus there is the general anti-abuse rule (GAAR) which applies to most UK taxes including SDLT.

The rules relating to special partnership transactions for SDLT purposes are set out in Part 3 of Schedule 15 to