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HMRC internal manual

Stamp Taxes on Shares Manual

Partnerships: Changes in a partnership: evaluating a document effecting a dissolution of partnership or retirement of a partner

When a document is submitted for stamping which effects the dissolution of a partnership we need the following information in order to determine the consideration chargeable. We should call for a copy of the original partnership agreement and of the balance sheet or statement of account between the partners as at the date of dissolution. The original partnership agreement may have been amended over the years if the partnership has been in existence for some time and of course any amending documents should also be submitted and taken into account. HMRC may review any unstamped amending documents to check if they should have been stamped.

If the balance sheet as at the date of dissolution has not been prepared when the dissolution document is sent for stamping, then the previous year’s balance sheet should be requested. Although not always essential in straightforward cases the above documents should always be called for as adjudication is compulsory when stamping an instrument transferring an interest in a partnership. HMRC should check the dissolution deed and compare it with the partnership agreement before deciding what (if any) further information might be required.