Budget 2010 – Stamp Duty Land Tax Partnerships
New anti-avoidance rules are to be introduced to stop the exploitation of the special stamp duty land tax (SDLT) rules for partnerships. The SDLT partnerships rules apply to transactions between a partnership and one of the partners. The rules calculate the chargeable consideration of a land transaction according to the degree of connection, by way of the partnership, between the vendor and purchaser.
HMRC contend that these rules are being exploited for some land transactions by contriving a partnership relationship between the vendor and the purchaser such that the chargeable consideration, and thus the SDLT due, is greatly reduced.
The legislation to be introduced in Finance Bill 2010 will disapply the partnerships rules from a “notional land transaction”. Transactions which fall within the anti-avoidance rules will not benefit from the special partnerships’ rules for calculating chargeable consideration.
The measure will apply where a “notional land transaction” has an effective date on or after 24 March 2010, subject to transitional rules.