When a partnership acquires a chargeable interest and enters into the land transaction as the buyer, this is called an ‘ordinary partnership transaction’. For example, in the situation where a firm acquires land and later sells it on (neither transaction being linked) there are no specialities of calculation and subject to the below the transaction of treated in the same way as if the firm was a natural person or a company.
Responsibility of partners
Anything required or authorised to be done by or in relation to the buyer under the transaction is required or authorised to be done by or in relation to all the responsible partners.
Subject to the provisions relating to representative partners below, the responsible partners in relation to a transaction are those that are members of the partnership at the time of the effective date of the land transaction, and any partner who joins the partnership after the effective date.
Paragraph 9, Schedule 17 LBTT(S)A defines a representative partner as a partner nominated by a majority of the partners to act as the representative of the partnership for the purposes of the LBTT(S)A. Any such nomination, or revocation of such a nomination, has effect only after the notice has been given to Revenue Scotland. Revenue Scotland must be notified in writing and this can be sent via email to LBTT@revenue.scot.
Anything required or authorised to be done by or in relation to the responsible partners may instead be done by or in relation to any representative partner or partners. This includes making the declaration that an LBTT return is complete and correct.
Liability of responsible partners
Irrespective of any nomination of representative partners, all the responsible partners have joint and several liability for the payment of LBTT. However, the joint and several liability of the partners in respect of the payment of the LBTT does not extend to any person who did not become a responsible partner until after the effective date of the relevant land transaction.