Special provisions relating to partnerships: Transfers of a chargeable interest to a partnership
Para10 applies where
- a partner transfers a chargeable interest to the partnership, or
- a person transfers a chargeable interest to a partnership in return for an interest in the partnership, or
- a person connected with
- a partner, or
- a person who becomes a partner as a result of or in connection with the transfer
transfers a chargeable interest to the partnership.
These rules apply whether the transfer to a partnership is in connection with the formation of a partnership or is a transfer to an existing partnership.
The rules in Part 2 [ordinary partnership transactions] have effect in relation to a transaction to which Para10 applies, but the responsible partners in relation to such a transaction are deemed to be
- those who were partners immediately before the transfer and who remain partners after the transfer, and
- any person becoming a partner as a result of, or in connection with, the transfer.
Para10 applies subject to any election under Para12A. See SDLTM34060.
Where there has been a transfer of an interest to a partnership within Para10, there may also be additional charges to SDLT if, subsequently, there is a transfer of an interest in the partnership or a withdrawal of money etc from the partnership. [Paras17 and 17A].