Stamp Duty Land Tax “SDLT” is not payable when a family-owned business partnership transfers its ‘whole business’ to a company at the point of incorporation, nor is a return needed. This also applies to non-family partnerships where the partners retain joint control of their new company. The legislation is FA2003/sch15 as amended by FA2004/Sch41
In Scotland, the applicable legislation is Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 17.
The Partnership Act 1890 Act describes a partnership as ….
‘the relation which subsists between persons carrying on a business in common with a view of profit.”
Further tests as to whether you are running a Partnership are:-
According to case law, the factors that point to the activities involved being broadly what you would expect in a business are:
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