Paragraph 19 Transfer of chargeable interest from a partnership: chargeable consideration including rentF1

United Kingdom

(1)

This paragraph applies in relation to a transaction to which paragraph 18 applies where the whole or part of the chargeable consideration for the transaction is rent.

(F22)

Schedule 5 (amount of tax chargeable: rent) has effect with the modifications set out in sub-paragraphs (2A) to (2C).

(2A)

In paragraph 2—

(a)

for “the net present value of the rent payable over the term of the lease” substitute “ the relevant chargeable proportion of the net present value of the rent payable over the term of the lease ”, and

(b)

for “the net present values of the rent payable over the terms of all the leases” substitute “ the relevant chargeable proportions of the net present values of the rent payable over the terms of all the leases ”.

(2B)

In paragraph F39A(6) —

(a)

for “the annual rent” substitute “ the relevant chargeable proportion of the annual rent ”, and

(b)

for “the total of the annual rents” substitute “ the relevant chargeable proportion of the total of the annual rents ”.

(2C)

For paragraph 9(4) substitute—

“(4)
Tax chargeable under this Schedule is in addition to any tax chargeable under section 55 F4or 74(1A) F5or Schedule F64A F7... as they have effect by virtue of paragraph 18 of Schedule 15.”.

(2D)

For the purposes of sub-paragraphs (2A) and (2B) the relevant chargeable proportion is—

(100 - SLP) %

where SLP is the sum of the lower proportions.

(8)

Paragraph 20 provides for determining the sum of the lower proportions.

(9)

This paragraph is subject to paragraph 24.

Annotations

Textual amendments

F1: Sch. 15 Pt. 3 substituted (with effect in accordance with Sch. 41 para. 3 of the amending Act) by Finance Act 2004 (c. 12), Sch. 41 para. 1
F2: Sch. 15 para. 19(2)-(2D) substituted for Sch. 15 para. 19(2)-(7) (with effect in accordance with Sch. 24 para. 11(1)(4) of the amending Act) by Finance Act 2006 (c. 25), Sch. 24 para. 6
F3: Word in Sch. 15 para. 19(2B) substituted (with effect in accordance with s. 95(13) of the amending Act) by Finance Act 2008 (c. 9), s. 95(11)(b)
F4: Words in Sch. 15 para. 19(2C) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 9(2)(a)
F5: Words in Sch. 15 para. 19(2C) substituted (with effect in accordance with Sch. 22 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 22 para. 8
F6: Words in Sch. 15 para. 19(2C) inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 9(2)(b)
F7: Words in Sch. 15 para. 19(2C) omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 7(2)(a)(v) (with s. 7(4)-(10))