»Ê¹ÚÌåÓýapp

Example 2

A partnership owns a chargeable interest (a freehold property, for example) which it wishes to transfer to a partner, individual D. »Ê¹ÚÌåÓýappre are two other partners, individuals E and F. Partner D is not connected with Partner F for the purposes of part 3, schedule 15, but he is married to Partner E, so is connected with her for purposes of SDLT. »Ê¹ÚÌåÓýapp parties are not connected in any other way.

Partner D’s partnership share is 30%. Partner E is also entitled to 30%, with Partner F being entitled to the balance of 40% - see SDLTM33770.

Partner D has again acquired 70% of the chargeable interest: the same proportion that was previously owned by Partners E and F, through their interest in the partnership.

»Ê¹ÚÌåÓýapp computation of the sum of the lower proportions does not, however, result in the same figure as before. »Ê¹ÚÌåÓýapp difference arises because of the connection between Partners D and E. In this instance, the SLP is calculated by reference not only to the proportion owned by Partner D prior to the transfer, but also by the share owned by his wife. As a result, the sum of the lower proportions is 60 - see SDLTM33770.

»Ê¹ÚÌåÓýapp end result is that the proportion of the market value chargeable as consideration for the purposes of SDLT is (100-60) % that is 40%. This equates to the proportion of the chargeable interest not previously owned by Partners D and E together. It is also identical to the proportion of the chargeable interest held prior to the transfer by Partner F through his interest in the partnership.