Can someone please confirm whether a Scottish Limited Partnership falls within the definition of a partnership for the purposes of Schedule 15.
I am interested in this as a vehicle as it seems to have advantages in connection with the loans to participators rules. The vehicle is only likely to take undertake ordinary partnership transactions and it would be good if the purchase price was apportioned to each of the partners with the possibility of getting rates lower than 4%, rather than being treated as a taxable entity itself.
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!