Please?

Great...

Relating to the transfer of land into and later out of a partnership and determining a partnership share for the SLP calculation.

Partnership is a family, so all connected persons.

Schedule 15 FA '03, para 21 says:

(2)Paragraph 22 applies for determining the partnership share attributable to a partner where—

(a)the effective date of the transfer of the relevant chargeable interest to the partnership was before 20th October 2003, or

(b)the effective date of the transfer of the relevant chargeable interest to the partnership was on or after that date and— .
(i)the instrument by which the transfer was effected has been duly stamped with ad valorem stamp duty, or .
(ii)any tax payable in respect of the transfer has been duly paid under this Part.


The effective date was after 20 October 2003 so it's a question as to whether (b)(i) or (ii) applies.

If land was transferred into a partnership but SDLT was not payable at the time as the value of the land was below the threshold, does this fall inside or outside of (b)(ii)?

I think the purpose of the provisions was to prevent the avoidance of tax on the transfer of land into a partnership using the "connected persons" rules, and then avoiding it again on the transfer out. However this provision is so badly drafted that it also seems to exclude a situation where SDLT was not paid due to the land being below the threshold?

Is that really the case?

Thanks...