Is there a withdrawal of money by the transfer resulting in a charge?

[Bob Sagoo]

If husband and wife transfer property to a partnership in say year 1, and then year 2 decide to transfer the property from the partnership to a company they own (say under s162 TCGA ) with no change in percentage ownership/control, is this caught by Sch 15 Para 17A – i.e. is there a withdrawal of money by the transferor within 3 years resulting in a SDLT charge?

[Patrick]

No I don’t think so. To be on the safe side it would help to sell the land and either leave the price outstanding or to retain the sales proceeds within the firm but lend them out until the three year period has expired.

[Bob Sagoo]

The intention would be to transfer the property from partnership to corporate – the consideration being issue of new shares to shareholders.

[Justin Bryant]

You need to be a bit careful re s75A FA 2003. See: http://www.peterrayney.co.uk/pdfs/sdlt.pdf

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