Special provisions relating to partnerships: Example of the application of the special provisions
A, B, C & D are in partnership, with a 25% share each in the income profits (Para 34).
A brings a property into the partnership worth £1m subject to a £250,000 mortgage which is secured on it. A is paid £500,000 by the partnership.
SDLT is calculated in accordance with Paras10 & 12 on the market value and the sum of the lower proportions (SLP) [see SDLTM33560].
In this case the SLP is 25 so that the charge is on 75% of the market value which is £750,000. The actual consideration and any related debt is ignored for the purposes of Para10.