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HMRC internal manual

Stamp Duty Land Tax Manual

SDLT - higher rates for additional dwellings: Condition C – partnership interests

Some major interests in dwellings held by a partner in a partnership can be ignored if they are owned at the end of the day [Para 14].

This can apply where an individual purchaser is a partner in a partnership and is purchasing a major interest in a dwelling which is not being purchased for partnership purposes [Para 14(1)].  This is most likely the case where an individual is buying a main residence for themselves.

The partnership must be carrying on a trade and the dwelling in which the purchaser already has an interest must be used for the purposes of the partnership’s trade [Para 14(2)].

A property letting business or any business exploiting land for rent carried on by a partnership is not a trade.

A partner in a partnership will be treated as a joint purchaser of land purchased by or on behalf of the partnership [Para 2 Sch 15 FA 2003].  In this case the tests will need to be applied in respect of all the partners, and if any one partner would be liable to the higher rates then the whole purchase will be liable.

An interest in a dwelling held for the purposes of a partnership cannot be ignored when a dwelling is being purchased for the purposes of the partnership.




`Para` references are to paragraphs in Schedule 4ZA of the Finance Act 2003.