SDLTM33250 | Ordinary partnership transactions: Effects of Part 1 and Part 2

Consider a group of solicitors in partnership. The partnership wishes to purchase a new property from which to practice. Acting through a representative partner, the partnership buys a freehold property from a person who is not a partner and with whom none of the partners are connected for SDLT purposes.

The partnership has entered into a land transaction which is treated as entered into by or on behalf of the partners. (Para2)

The partners are jointly and severally liable to pay any SDLT due on the purchase. (Para7).

A partner joining after the effective date of a transaction has no SDLT liability in respect of any tax or interest due on that transaction, but may incur a liability to penalties. See examples at SDLTM33260 and SDLTM33270.

As Part 3 does not apply to this transaction, the chargeable consideration is computed under the normal SDLT rules (FA03/Sch4). Where, as is normally the case, full consideration passes on completion, this is the amount on which SDLT is chargeable.