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HMRC internal manual

Stamp Duty Land Tax Manual

Application of exemptions and reliefs: Group relief

There is a transfer of a chargeable interest from E Ltd to B Ltd.

The provisions of Sch15 would not have any application in this example as it is not a transfer from or to a partnership.

Therefore we look directly to the application of Sch7.

For group relief to apply for SDLT purposes the transfer must be between group companies and a company must be a body corporate and the 75% beneficial ownership test must be met.

An LLP has its own legal personality so we cannot look through to the partners so for group relief to apply we have to identify a group structure including the LLP.

Although it is a body corporate it does not have an issued share capital so it cannot meet the requirements of Sch7 (it can not be a subsidiary of anther company) so SDLT is due on this transaction as a transfer from one company to another without the benefit of group relief.