# Finance Act 2003, Paragraph 18: Transfer of chargeable interest from a partnership: general

Extent: E+W+S+N.I.

(1) This paragraph applies where a chargeable interest is transferred—
(a) from a partnership to a person who is or has been one of the partners, or
(b) from a partnership to a person connected with a person who is or has been one of the partners.
(2) The chargeable consideration for the transaction shall (subject to paragraph 24) be taken to be equal to—
MV×(100-SLP)%where—
MV is the market value of the interest transferred, and
SLP is the sum of the lower proportions.
(5) Paragraph 20 provides for determining the sum of the lower proportions.
(6) Paragraph 19 applies ... if the whole or part of the chargeable consideration for the transaction is rent.
(7) For the purposes of this paragraph property that was partnership property before the partnership was dissolved or otherwise ceased to exist shall be treated as remaining partnership property until it is distributed.
(8) This paragraph has effect subject to any election under paragraph 12A.

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Source: https://www.legislation.gov.uk/ukpga/2003/14/schedule/15/paragraph/18 (the official version)
Page: https://openlegislation.uk/finance-act-2003/schedule-15/paragraph-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.