Is the SLP on transfers into a partnership affected when a partner’s profit share increases?

Home Forums Patrick Cannon Is the SLP on transfers into a partnership affected when a partner’s profit share increases?

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    Steph Parker
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    If land is transferred into a trading partnership containing connected individuals plus a corporate partner there will be a charge to SDLT based upon the company’s share of profits.

    If the company’s profit share is low at the time of the transfer and is subsequently increased, say 6-12 months later, could there be a charge to SDLT on the basis that the profit was artificially surpressed?

    Presumably this will depend upon the facts of the case, but if anyone has any exepience of HMRCs attitude to this issue, I would be grateful for your comments.

    #329 Reply
    Patrick
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    It would depend on the facts but you would in any event be looking at a possible SDLT charge on the increase in the company partner’s share under paras 14 and 36 (or possibly para 17) Sch 15.

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