Transfers out of a partnership

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    I’ve got a question concerning the transfer of a property out of a partnership.

    When you are calculating the SLP under para 20, and you get to step 4, you’re directed to determine the ‘chargeable interest attributable to the [corresponding] partner’, and this requires you to work through para 21. Para 21 seems to say that if the underlying properties went into the partnership post October 2003 and SDLT was ‘duly paid’ under Schedule 15, then on a transfer out, the chargeable interest attributable to the partner is not zero and is found in para 22.

    My question is that what does duly paid under Schedule 15 actually mean? What happens for example if one of the properties was transferred in by a connected person but the consideration was below the 1% threshold? Or what would happen if the partnership just acquired a bare plot of land (at say ?200,000) and then built a multi million pound property on it. The legislation seems to assume that the properties held by the partnership were all transferred to it at some stage but this may not have been the case.

    Any thoughts anyone?

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