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Has anyone any thoughts on the new s.75C(8A) in relation to simple partnership transactions. The STPG made representations back in April 2010 and I understand a meeting may have taken place with HMRC since then, without any significant movement or guidance forthcoming. In particular, a key issue is whether simply establishing a partnership to receive property is a scheme transaction within s.75A?
It would seem very harsh for the special partnership provisions to be switched off simply because a partnership had to be formed. Notwithstanding the very wide definition of transaction for the purposes of s.75A there must surely be some resonable limit or else s.75C(8A) would have repealed Part 3 of Schedule 15.
HMRC have drafted some guidance for s.75A and have informally circulated it for comment to a few representative bodies and possibly others. This draft includes an example where a partnership is formed and HMRC’s view is that s.75A does not apply. But they give no explanation as to why they think that it doesn’t apply. So we can expect comfort in due course on this particular point but the quality of the guidance overall has yet to be determined.
