HMRC issue revised SP D12 on CGT for partnerships

HMRC issue revised Statement of Practice D12 on capital gains for partnerships

HMRC issued an update on 14 September of Statement of Practice D12 covering the CGT treatment of partnerships, following a 2015 Office of Tax Simplification review of the treatment of partnerships. SP D12, first published in 1975, offers a number of points of general practice in connection with partnership CGT, to which TCGA 1992, s 59 applies.

The Statement of Practice was last updated in 2002, following the introduction of limited liability partnerships. The latest update includes a new section five covering the situation where a partner contributes an asset to a partnership by means of a capital contribution which follows the approach outlined by HMRC in the Revenue & Customs Brief 03/08. Guidance and examples concerning this issue are also available in HMRC’s Capital Gains Manual at CG27900.

The Statement also includes a new section 14 which provides an update, with links to HMRC’s manuals, on the available reliefs due to partners including entrepreneurs’ relief, roll-over relief and relief for the gifts of business assets.

A copy of the statement can be found at 

If you would like further information on SP D12 or on partnership CGT, please contact the TaxDesk on 0845 4900 509 and ask for Martin Mann, Paula Tallon or Paul Howard.