We have recently been successful in appealing against a decision of HMRC that Stamp Duty Land Tax was payable by a client on a property transaction where the partners had purchased a retiring partner’s share. We argued that the transaction fell within the exemption introduced by Schedule 15 of the Finance Act 2003 and therefore did not attract SDLT. Our client’s lender agreed with our understanding of the legislation that transfers of shares in non-investment partnership property are no longer subject to SDLT.
HMRC accepted our argument and as a result cancelled their penalty notice and interest charge for the transfer of the share in the property.
We can not guarantee any result with the HMRC and would need to consider each case on it’s own facts.
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