DUTIES ACT 2001 - SECT 48 Dutiable value of dutiable transaction reduced for transfer of dutiable property to partner on retirement or dissolution

DUTIES ACT 2001 - SECT 48

48 Dutiable value of dutiable transaction reduced for transfer of dutiable property to partner on retirement or dissolution

(1) This section applies if, on a person (the
"retiring partner" ) ceasing to be a partner in a partnership because of the retiring partner’s retirement from the partnership or its dissolution, dutiable property of the partnership is transferred or agreed to be transferred to the retiring partner.

(2) The dutiable value of the dutiable transaction for the transfer, or agreement for the transfer, of the dutiable property to the retiring partner must be reduced by an amount worked out by applying the retiring partner’s partnership interest in the partnership to the unencumbered value of the dutiable property immediately before the retirement or dissolution.

Example for subsection (2)—

A, B and C are in partnership in equal shares. B had a one-third partnership interest immediately before retiring. On B ceasing to be a partner, A and C transfer land to B. The dutiable value of the land acquired by B will be reduced by one-third.