Land and Buildings Transaction Tax (Scotland) Act 2013 section Sch 17 para 34

Exchanges involving partnership interests

Schedule 17, paragraph 34 sets out how the exchange rules apply when someone acquires an interest in a partnership in return for entering into a land transaction with an existing partner.

• When a partnership interest is acquired in exchange for a land transaction with an existing partner, the normal exchange rules from Schedule 2 may apply.
• If the partnership's relevant property includes a major interest in land (such as ownership or a lease), the partnership interest itself is treated as a major interest in land for the purposes of the exchange rules.
• The meaning of "relevant partnership property" is determined by the definitions set out in the property investment partnership provisions (paragraph 32 of Schedule 17).
• Where this paragraph applies, the partition rules that would normally allow an existing interest to be disregarded when calculating chargeable consideration do not apply.