Take part in the SDLT discussion forum and give feedback. Sign up to submit that question you've wanted to ask or to share your experience or an outcome to a point of law or practice that may be puzzling the rest of us.

Home Forums Patrick Cannon Does a Scottish Limited Partnership fall within the SDLT definition? Reply To: Does a Scottish Limited Partnership fall within the SDLT definition?

#529
Alastair Johnston
Guest

Jules,

When I worked for the Inland Revenue, it was accepted by them that a Scottish partnership had advantages over an English one for S419 ICTA (now ch 3 part 10 CTA 2010). Their position was that they would not seek to apply S419 to loans by Scottish partnerships (even if the partners were companies) provided there was a good reason for the partnershp being Scottish rather than English. Essentially this meant that if the parties were based in Scotland, they could avoid S419, but if they were based in England and tried to use a Scottish partnership to avoid S419, the Revenue might challenge it. That was over a decade ago, but as far as I am aware, that is still the HMRC view. I was unaware of the Revenue ever challenging such “artificial” use of a Scots partnership by Englishmen, but being based in Scotland myself I may not have been best placed to find out!