Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 5

Acquisition of a partnership interest – general rule

Schedule 7 paragraph 5 establishes the general rule that acquiring an interest in a partnership is not a chargeable transaction for Land Transaction Tax purposes, even where the partnership owns land, subject to two specific exceptions.

• Acquiring an interest in a partnership is generally not a chargeable land transaction, even if the partnership holds land among its assets.
• This means that, in most cases, no Land Transaction Tax is due simply because someone acquires a share in a partnership that owns property.
• The first exception applies where the transfer of a partnership interest was made pursuant to earlier arrangements — these are dealt with separately under paragraph 18 of Schedule 7.
• The second exception applies where the partnership is a property-investment partnership — these are dealt with separately under paragraph 34 of Schedule 7.