SDLTM33510 | Special provisions relating to partnerships: Transfers of a chargeable interest to a partnership

Para10 applies where

1. a partner transfers a chargeable interest to the partnership, or

2. a person transfers a chargeable interest to a partnership in return for an interest in the partnership, or

3. a person connected with

• a partner, or

• a person who becomes a partner as a result of or in connection with the transfer

transfers a chargeable interest to the partnership.

These rules apply whether the transfer to a partnership is in connection with the formation of a partnership or is a transfer to an existing partnership.

The rules in Part 2 [ordinary partnership transactions] have effect in relation to a transaction to which Para10 applies, but the responsible partners in relation to such a transaction are deemed to be

1. those who were partners immediately before the transfer and who remain partners after the transfer, and

2. any person becoming a partner as a result of, or in connection with, the transfer.

Para10 applies subject to any election under Para12A. See SDLTM34060.

Where there has been a transfer of an interest to a partnership within Para10, there may also be additional charges to SDLT if, subsequently, there is a transfer of an interest in the partnership or a withdrawal of money etc from the partnership. [Paras17 and 17A].