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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Special provisions relating to partnerships: Transfers of a chargeable interest from a partnership


A partnership grants a lease of non-residential property to Partner A. There are two other partners with whom partner A is not connected for the purposes of FA03/Sch15/Part3. Partner A is entitled to a 25% share of the income profits of the partnership. As a result of the transfer the proportion of the interest owned by Partner A is increased from 25% to 100%.

The sum of the lower proportions calculated in accordance with para20 is 25

The net present value of the rents computed in accordance with FA03/Sch5, as applied by Para19, is £100,000.

The premium charged on the grant of the lease was £240,000. It is accepted that this was a market value premium.

The consideration chargeable on this transfer is calculated as follows:

  1. The market value of the premium x (100 - SLP)%: that is

240,000 x (100 - 25) % = 180,000

The current threshold for non residential property is £150,000, as the chargeable consideration is £180,000 SDLT is due on the whole amount at the appropriate rate.

  1. The relevant chargeable proportion of the net present value of the rents: that is

100,000 x (100 - 25) % = 75,000

The current threshold is £150,000 as the rental element is below this it is not liable.

SDLT in the sum of £1,800 is due on this transaction. Had the chargeable amount exceeded the threshold SDLT would be due on the total of the premium and rental elements.