Scope: How much is chargeable: Non-cash consideration: Land partitioned FA03/SCH4/PARA6: Example
A and B own a farm jointly in equal shares.
They decide to partition the farm and it is agreed that A will take 50% of the land and B will take 50% of the land.
The total market value of the land is £2m.
If each half of the land is of equal value then no Stamp Duty Land Tax (SDLT) is chargeable.
However the land taken by A may include the farmhouse and farm buildings.
The land retained by A has a value of £300,000 greater than the land that is to be retained by B.
A’s share is worth £1,150,000 and B’s share is worth £850,000 and A might compensate B by paying £150,000 to equalise the partition.
This £150,000 would be subject to a charge to SDLT.