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Trees and PIPs

05 July 2011
Issue: 4311 / Categories: Forum & Feedback , Inheritance Tax , Land & property
A transfer of a partnership interest is subject to stamp duty land tax if it is to a ‘property investment partnership’ (PIP)

We are aware that FA 2003 Sch 15 para 14 now limits a charge to stamp duty land tax on transfers of partnership interests to ‘property investment partnerships’.

Our query however concerns whether a particular partnership’s activity would cause it to fall within the definition of a ‘property investment partnership’.

Specifically the partnership owns forestry and our understanding is that the activities undertaken do not go beyond typical ‘commercial management’ i.e. the felling and selling of timber with the restocking of depleted areas as required.

Such activities are not regarded as a ‘trade’ for income tax purposes (ITTOIA 2005 s 11) but does this then mean that the partnership is not ‘trading’ for stamp duty land tax purposes and so is...

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