SDLTM34110 - Special provisions relating to partnerships: Partnership Interests: application of provisions about exchanges etc.

Where a partnership is not involved, if A & B each own 50% of two properties and decide to take one specific property each, the exchange rules are overridden by FA03/Sch4/para5(6) and are to be replaced by the rules under FA03/Sch4/para6 (‘partition’). A charge will only be made on a partition if equality money is to be paid between the parties.

In partnership cases however, the exchange rules apply and are not overridden by the partition rules (Para 16(3)).

Therefore, whilst Para 16(1) introduces FA03 Sch4 para5 to Sch15 in particular circumstances, Para 16(3) makes it clear that the partition rule in FA03 Sch4 is not imported into Sch15.

As the partition rules do not apply to partnership transactions, where property is portioned between partners the provisions of Para18 Sch15 apply instead.