Stamp Duty on partnership transfers after April

by Readers Question

12:47 PM, 22nd March 2016
About 3 years ago

Stamp Duty on partnership transfers after April

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Stamp Duty on partnership transfers after April

I’m looking into the possibility of using a BICT to transfer the beneficial interest of my personally held buy to lets to a company and believe I’m well placed to claim capital gains relief as I manage the portfolio myself. stamp

However the SDLT payable would be very high and make structuring my business in this manner not worth it.

I’m looking into the rules regarding the transferal interest of partnership properties and believe that there is no SDLT payable for this – does anyone know if that is still the case post April 1st 2016?

Thanks for your help.

AP



Comments

Neil Patterson

12:51 PM, 22nd March 2016
About 3 years ago

Hi AP
From our accountants:

"There has been no definitive answer found yet since the budget.

The HMRC guidance re SDLT issued on 16 March 2016 does not mention it.

The Finance Bill should be issued on Thursday and this may give us more information. "

Mark Shine

20:23 PM, 22nd March 2016
About 3 years ago

Reply to the comment left by "Neil Patterson" at "22/03/2016 - 12:51":

Hi Neil

I find the different SDLT treatment on incorporation between sole traders and partnerships a little puzzling.

That said, if Osborne & Gauke change the rules regarding incorporation of partnerships on Thursday - could that not potentially be seen as yet another act of State Aid (for already incorporated LLs)?

I imagine Chris & Steve's lawyers might have something to say about that?

If HMT suddenly decide that they no longer wish to engage in State Aid (to corporate LLs and partnerships), surely they should HAVE no option but to 'level the playing field' by extending the same SDLT treatment that partnerships already 'enjoy' on incorporation... to sole traders, for those who qualify for Section 162 incorporation relief?

If Chris or Steve are reading, you might want to consider raising this point with your lawyers at some point?

AP

6:17 AM, 23rd March 2016
About 3 years ago

Thanks for your help Neil.
I agree with Mark that I don't understand why the rules are different for partnerships than for sole traders!


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