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No SDLT on partnership incorporation. Not a LLP

I subscribe to www.rossmartin.co.uk a well known website for accountants and tax advisors

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Under one article- Incorporation a partnership option 3 -sale in exchange for a loan account.

It states

‘If the partners and the shareholders are the same people and hold the same interest in the property before and after incorporation, there should be no SDLT payable and no SDLT return required.’

My situation is exactly like this  and am advising a trading partnership with commercial premises.

Whilst I am sure of the integrity of this tax website, I need to double check that no SDLT is applicable as I had thought this for for LLP’s and not normal partnerships. Or are LLP's for residential buy to let investors?

I would appreciate comments as I do not want to get this wrong.

Thank you

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06th Dec 2018 11:40

As far as I am aware there are no SDLT specialists at that website and I recommend that one is engaged to advise on that as partnerships & SDLT is far from straight forward.

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By Dib
06th Dec 2018 13:25

You may be OK re SDLT. you need to consider the sum of the lower proportions calculation in para 18 Sch 15 FA 2003. The rules apply for both ordinary partnerships and LLPs (para 1 for LLPs). Excellent article by Peter Rayney explains it - https://www.peterrayney.co.uk/pdfs/sdlt.pdf

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to Dib
06th Dec 2018 13:59

Thank you Dib

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