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SDLTM33580 | Special provisions relating to partnerships: Transfers of a chargeable interest to a partnership

From HM Revenue & Customs · Stamp Duty Land Tax Manual

Para11 applies in relation to a transfer of a chargeable interest to a partnership to which Para10 applies and where the whole or part of the chargeable consideration consists of rent.

Where a lease is granted (and Part 3 does not apply), the rules within FA03/Sch4 determine the consideration in relation to any premium and the rules within FA03/Sch5 determine the consideration in relation to any rent. FA03/Sch5 sets out how to calculate the ‘net present value’ of the future rental flow.

Where the rules in Part 3 do apply:

  1. a proportion of the market value of the premium will be chargeable [Paras10 and 12] together with

  2. a proportion of the net present value of the rent.

The net present value of the rent is determined under the rules provided in FA03/Sch5, as applied and amended by Para 11(2) which applies a similar calculation of the chargeable proportion to Para10/12.

The proportion of the net present value chargeable is (100 - SLP) % [Para 11(2D)] where ‘SLP’ is the sum of the lower proportions calculated in accordance with Para12. Further information about the sum of the lower proportions can be found at SDLTM33550.