Is SDLT payable on the incorporation of a property partnership?

[Patrick]

HMRC accept that the special partnership rules trump the section 53 market value rule. S53(4) makes the mv rule subject to any other “exemption or relief” which is apt to cover this siutation. See 3.4 of my Tolley Stamp Taxes book for more on this.

[Patrick]

You ask whether SDLT is payable. As PC says, this is determined under Para 18 Sch 15 FA 2003 and no SDLT should be due if the partners are connected (e.g. husband & wife). If they are unconnected then SDLT may be due, but there are ways around this.

For any residential property going into a company you need to consider the new SDLT and other tax charges announced in the 2012 Budget.

[Author]

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