Stamp duty - change in partership shares

Stamp duty - change in partership shares

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We have a farming partnership, and the profits are split 1/3, 1/3, and 1/3.

One of the partners is planning to retire, and the split will be 2/6, 3/6 and 1/6 from now on.

Is SDLT payable in the transfr from the partners in the partnership due to the change in the underlying assets?

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David Winch
By David Winch
15th Jul 2012 12:26

See a solicitor

I would advise you to get legal advice from a solicitor on this.

You need to be clear on whether the land is an asset owned by the partnership or by the partners (as individuals) or by just one or some of the partners (or even in part by someone else - such as partners' wives).

A change in the division of PROFITS arising in future does not necessarily involve a change in ownership of the underlying assets (although possibly there should be a rental agreement between the farming partnership and the land owners).

There may be other tax implications (not just stamp duty) if the ownership of the underlying assets is altering.

David

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