Exemptions, reliefs and notification

Worked example for LBTT7012 Exemptions, reliefs and notification.

Example of application of charities relief to partnership transactions:

A, B and C are each 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 LBTT charities relief against any liability to LBTT if all the land held by the partnership following D’s admission is held for qualifying purposes.
 
If, within three 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interest held by the partnership as partnership property ceases to be held for qualifying purposes, the relief will be withdrawn. LBTT will then become payable on the proportion of the market value that would have been chargeable at the time that charities relief was claimed.

Last updated: 
15 February 2015
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