SDLT and retirement

We act on behalf and prepare the accounts of a partnership and land is shown as a partnership asset in the balance sheet. The partnership consists of a father and his two sons.

There is no written partnership agreement but the partners have come to an agreement over the sharing of income over the years and generally the father has taken little or no profit share. Capital assets such as the land are treated as being owned equally.

Father now wishes to retire from partnership but he would like to retain his share of the land. Because his one-third share will no longer be a partnership asset does this mean that stamp duty land tax (SDLT) will still be payable on the transfer out to him even though he still owns his share?

Of the two remaining partners (the two sons) one will then...