.png)
.png)
Strange rules, beyond understanding
Key points
- Inheritance tax solutions may trigger SDLT problems.
- The measure of a person’s interest in a partnership for SDLT purposes is by reference to income rather than capital sharing ratios.
- Watch out for aunts uncles nephews nieces and cousins. If they are partners the connected persons rules will not apply and so SDLT may be chargeable on transfers.
- Withdrawal of capital within three years may trigger SDLT charges.
- Watch out for future changes in profit sharing ratios – they could spring a nasty surprise.
One of the enjoyable things about tax work is occasionally being able to save someone a lot of money with one or two sheets of paper. A good example is in relation to IHT business property relief – see Example 1.
This dichotomy in business property rules is somewhat strange and the rationale for it is...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
