Subsection (1) provides for relief from stamp duty on an instrument transferring property from a person to a newly incorporated LLP in connection with its incorporation, subject to a time limit of one year from incorporation and to the conditions in subsections (2) and (3) .
Subsection (2)The first condition is that at the relevant time the person is either a partner in a partnership of the persons who are or are to be members of the limited liability partnership, or holds the property as nominee or bare trustee for one or more of the partners.
Subsection (3) The second condition is that either the proportions of the property transferred to which the persons referred to in subsection (2)(a) are entitled immediately after the transfer are the same as at the relevant time, or none of the differences in those proportions is attributable to tax avoidance.
Subsection (4) sets out the circumstances in which a person holds property as bare trustee for the purpose of subsection (2).
Subsection (5) defines “relevant time” for the purpose of the section.
Subsection (6)provides the administrative procedure for relief under the section.
Commentary on Sections Taxation Section 12: Stamp duty