Paragraph 13 I1

(1)

This paragraph applies where—

(a)

a partner transfers a chargeable interest to the partnership,

(b)

a person transfers a chargeable interest to a partnership in return for an interest in the partnership, or

(c)

a person connected with—

(i)

a partner, or

(ii)

a person who becomes a partner as a result of or in connection with the transfer,

transfers a chargeable interest to the partnership.

(2)

This paragraph applies whether the transfer is in connection with the formation of the partnership or is a transfer to an existing partnership.

(3)

The chargeable consideration for the transaction is taken to be equal to—

MV \times (100 - SLP) %

Figure 9 where—

MV is the market value of the chargeable interest transferred, and

SLP is the sum of the lower proportions.

(4)

Paragraph 14 provides for determining the sum of the lower proportions.

(5)

Part 7 applies if the whole or part of the chargeable consideration for the transaction is rent.

(6)

Paragraphs 9 to 11 (responsibility of partners) have effect in relation to a transaction to which this paragraph applies, but the responsible partners are—

(a)

those who were partners immediately before the transfer and who remain partners after the transfer, and

(b)

any person becoming a partner as a result of, or in connection with, the transfer.

(7)

This paragraph has effect subject to any election under paragraph 36.

Annotations

Commencement

I1: Sch. 7 para. 13 in force at 1.4.2018 by S.I. 2018/34, art. 3