SDLTM33110 | How is a partnership treated for SDLT purposes: Partnership defined for the purposes of SDLT-Para1

A partnership for the purposes of SDLT is defined as

• a partnership within the Partnership Act 1890

• a limited partnership registered under the Limited Partnerships Act 1907

• a limited liability partnership formed under the Limited Liability Partnerships Act 2000 or the Limited Liability Partnerships Act (Northern Ireland) 2002 or

• a firm or entity of a similar character to any of the above formed under the law of a country or territory outside the United Kingdom.

In this guidance, unless specified otherwise, the word ‘partnership’ is used generically to refer to any entity that qualifies as a partnership under any of the above definitions.

In each case, a partnership will exist if and only if the entity carries on a ‘business’. HMRC’s guidance on this is set out in the Partnership Manual at PM131800 and Property Income Manual at PIM1035

Where an entity does not carry on a business there will not be a partnership and the partnership rules set out in this chapter will not apply: even if the parties are bound by a partnership deed.

It is possible that simply holding investment property jointly might not constitute a business.