Is there a withdrawal of money by the transfer resulting in an SDLT charge under Sch 15 Para 17A FA 2003 when property is transferred out of a partnership to a connected company within 3 years?

Home Forums Patrick Cannon Is there a withdrawal of money by the transfer resulting in an SDLT charge under Sch 15 Para 17A FA 2003 when property is transferred out of a partnership to a connected company within 3 years?

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    Bob Sagoo
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    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?

    #692 Reply
    Patrick
    Guest

    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.

    #693 Reply
    Bob Sagoo
    Guest

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

    #694 Reply
    Justin Bryant
    Guest

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

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Reply To: Is there a withdrawal of money by the transfer resulting in an SDLT charge under Sch 15 Para 17A FA 2003 when property is transferred out of a partnership to a connected company within 3 years?
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