SDLTM34310 | Special provisions relating to partnerships: Application of exemptions and reliefs

A B and C are 33.33% partners in a property investment partnership.

D (a body or trust established for charitable purposes only) wishes to become a partner.

D can claim relief under FA03/Sch8 against any liability to SDLT which arises under para14 if all the land held by the partnership following D’s admission is held for qualifying purposes.

If, within 3 years of this transfer any chargeable interest held by the partnership as partnership property ceases to be held for qualifying purposes, the relief will be withdrawn. SDLT will then become payable on the proportion of the market value under para14, which is the proportion that would have been chargeable at the time that Charity relief was claimed.