Business Succession & Stamp Duty
Following the recent High Court case of Commissioner of State Taxation v Henschke  HCA 43, where a partner retires from a partnership notwithstanding that the remaining partners enjoy an accretion in their respective dutiable partnership interests following the retirement of the outgoing partner, the increase is not achieved by way of a dutiable transaction as defined in the NSW Duties Act 1997. Accordingly, no stamp duty should apply. The NSW Office of State Revenue Ruling SD 058 issued in 1987 (which take the opposite point of view) has yet to be updated! We can agitate your case with the Commissioner if need be.