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HMRC internal manual

Stamp Duty Land Tax Manual

Special provisions relating to partnerships: Broad effect of the application of the special provisions

The rules apply to certain transactions involving the transfer of

  • a chargeable interest to a partnership by a partner or connected person (Paras10 and 11)
  • an interest in a property investment partnership (Para 14)
  • a chargeable interest from a partnership to any of its partners, or person connected with them (Paras18 and 19)

Where there has been a transfer to a partnership that is within Para10 there can also be additional charges to Stamp Duty Land Tax (SDLT) if, subsequently, there is a transfer of an interest in the partnership or a withdrawal of money, etc. from the partnership even if it is not a property investment partnership. (Paras17 and 17A)

Subject to certain exceptions, the SDLT legislation (FA03/Sch4) normally brings into charge the actual consideration given for the chargeable interest together with the amount of any debt assumed by the purchaser. However, where the transaction falls to be taxed under Part 3 the chargeable consideration is computed by reference to the market value of the chargeable interest or interest in the property investment partnership. Neither actual consideration nor any related debt is taken into account.

The rest of this guidance is concerned solely with the application of these special provisions.