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Chapter SDLTM09705

Document Cited in Related
Vincent
Published date19 March 2016
Record NumberSDLTM09705

Partnership transactions are within the higher rate charge to the extent that the chargeable consideration for the transaction exceeds the higher rate threshold.

A partnership is within the higher rate charge if any of its members is a person to whom the higher rate would apply if they were a sole purchaser or a joint purchaser.

This is the case whether the transaction is one to which the charge arises by virtue of a purchase from a third party, or one to which the special partnership rules in FA03/SCH15 apply, if the transaction consists of or includes a higher threshold interest.

A transfer of an interest in a partnership within paragraph 17(2) (transfer of partnership interest pursuant to earlier arrangements), or a chargeable event within paragraph 17A of Schedule 15 FA 2003 (withdrawal of money, and so on, from partnership after transfer of chargeable interest) of Schedule 15 FA 2003), is within the higher rate charge if the partners include a body corporate.

The higher rate charge applies irrespective of the economic effect of the transaction. So, even if the economic transfer of value on the introduction of the property into a partnership is from a body corporate to an individual, the higher rate charge will apply where the chargeable consideration arrived at from the sum of the lower proportions exceeds the higher rate threshold.

Examples
  1. A partnership of two individuals purchases a chargeable interest in a dwelling. The interest costs £2.5 million. The 15 per cent higher rate SDLT charge does not apply because none of the members of the partnership is within FA03/SCH4A/PARA3(3).
  2. A partnership consisting...

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