LBTT7001 - Partnerships

Chapter 7 of the LBTT legislation guidance covering partnerships.

This chapter covers the rules regarding partnerships and LBTT and mainly relates to the provisions contained in schedule 17 to the LBTT(S)A 2013.

The following are the circumstances in which LBTT liability will arise when partnerships deal with chargeable interests:

  • when a partnership acquires a chargeable interest and enters into the land transaction as the buyer (ordinary partnership transactions – see LBTT7004);
  • when a chargeable interest is transferred to a partnership by a partner, a person who will become a partner or a person connected (see LBTT7003) to either the partner or person who will become a partner;
  • when a chargeable interest is transferred from a partnership to a person who is or was a partner, or is connected (see LBTT7003) with such a person; and
  • when a chargeable interest is transferred from a partnership to another partnership.

The guidance in this chapter is structured as follows:

LBTT guidance on general rules regarding the treatment of partnerships, including defining a partnership and rules on continuity of a partnership.

LBTT guidance on interpretations in Chapter 7 of the LBTT guidance, including defining partnership property, connected persons and arrangements etc.

LBTT guidance on ordinary partnership transactions in relation to LBTT, including representative partners and the liability of representative partners.

LBTT guidance on the transfer of a chargeable interest to a partnership, including determining the chargeable consideration for such a transaction.

LBTT guidance covering a situation where a transfer of a partnership interest occurs pursuant to arrangements that were in place at the time of a land transfer.

LBTT guidance on the situation where money etc. is withdrawn from a partnership following the transfer of a chargeable interest.

LBTT guidance on the transfer of a chargeable interest from a partnership to a person who is or was a partner, or connected with such a person.

LBTT guidance on the transfer of a chargeable interest between partnerships.

LBTT guidance on the transfer into or out of a partnership of a chargeable interest involving a lease.

LBTT guidance on property investment partnerships.

LBTT guidance on certain exemption, relief and notification rules for land transactions involving partnerships.