The question to be answered in determining the rate of relief is: does the interest of the transferor carry the right to vacant possession?

If land is owned by one or more of the partners as individuals, and occupied by the partnership (without a formal lease) the answer is clearly yes, and relief is at 100 per cent.

In England a tenancy cannot be granted in favour of a partnership as such, and is therefore granted in favour of the partners as joint tenants in respect of the legal title and as tenants in common in respect of the beneficial title. The rate of relief on the death of the partner who is the landlord will depend upon whether the lease terminates as a result of the death.

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