SDLTM33260 | Ordinary partnership transactions: Example 1

A partnership between A, B and C buy a property on 1st May 2019. Partners A, B and C are the responsible partners at the relevant time (the effective date of the transaction, (Para 6(2)(a). The SDLT return is due within 14 days of 1st May (FA03/S76).

Partner D joins the partnership on 8th May 2019 and the SDLT return for the purchase is made on 10th May.

Partner D is a responsible partner in respect of this transaction as he became a partner after the effective date. However, he has no liability for any tax due as this cannot be recovered from a person who did not become a responsible partner until after the effective date (para7 (1A).

However, if a penalty arose, Partner D would have a joint and several liability with A, B and C if he were a partner when the omission resulting in the penalty occurred (Para7). See example 2 at SDLTM33270.