SDLT and partnerships—transfers to a partnership
SDLT and partnerships—transfers to a partnership

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • SDLT and partnerships—transfers to a partnership
  • Special partnership transactions
  • General principles applicable to special partnership transactions
  • Transfer of a chargeable interest to a partnership
  • Transfer from a corporate partnership
  • Transfer of partnership interest—earlier arrangements
  • Withdrawal of value within three years

This Practice Note explains the special stamp duty land tax (SDLT) rules which apply when an interest in land is transferred to a partnership from one or more partners or persons connected with one or more partners. This includes a transfer on formation of the partnership.

SDLT ceased to apply to any land transaction involving any interests in or over land in Scotland from 1 April 2015. From that date, land and buildings transaction tax (LBTT) applies to such transactions, subject to transitional provisions. For further details, see the LBTT subtopic.

SDLT ceased to apply to any land transaction involving any interest in or over land in Wales from 1 April 2018. From that date, land transaction tax (LTT) applies to such transactions, subject to transitional provisions. For further details, see the Wales: LTT subtopic.

Special partnership transactions

Special SDLT rules apply:

  1. when a chargeable interest is transferred to a partnership from one or more partners or persons connected with one or more partners, including transfers on formation of the partnership

  2. when value is withdrawn from a partnership by certain parties during the three years following a transfer as described in the bullet point above

  3. when a chargeable interest is transferred from a partnership to one or more partners or persons connected with one or more partners, including transfers in connection with