A and B own a farm jointly in equal shares.
They decide to partition the farm and it is agreed that A
will take 50% of the land and B will take 50% of the land.
The total market value of the land is £2m.
If each half of the land is of equal value then no stamp duty
land tax is chargeable.
However the land taken by A may include the farmhouse and
farm buildings.
The land retained by A has a value of £300,000 greater
than the land that is to be retained by B.
A's share is worth £1,150,000 and B's share is worth
£850,000 and A might compensate B by paying £150,000 to
equalise the partition.
This £150,000 would be subject to a charge to stamp duty
land tax.
