SCHEDULE 17Partnerships

PART 2General provisions

Meaning of “partnership”

I1 2

In this Act, “ partnership ” means—

a

a partnership within the Partnership Act 1890 (c.39),

b

a limited partnership registered under the Limited Partnerships Act 1907 (c.24),

c

a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c.12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c.12 (N.I.)),

d

a firm or entity of a similar character to any of those mentioned in paragraphs (a) to (c) formed under the law of a country or territory outside the United Kingdom.

Chargeable interests treated as being held by partners etc.

I2 3

1

For the purposes of this Act—

a

a chargeable interest held by or on behalf of a partnership is treated as held by or on behalf of the partners, and

b

a land transaction entered into for the purposes of a partnership is treated as entered into by or on behalf of the partners,

and not by or on behalf of the partnership as such.

2

Sub-paragraph (1) applies notwithstanding that the partnership is regarded as a legal person, or as a body corporate, under the law of the country or territory under which it is formed.

Acquisition of interest in partnership not chargeable except as specially provided

I3 4

The acquisition of an interest in a partnership is not a chargeable transaction, notwithstanding that the partnership property includes land, except as provided by—

a

Part 4 of this schedule (transfer of chargeable interest to a partnership),

b

paragraph 17 (transfer of partnership interest pursuant to earlier arrangements), or

c

paragraph 32 (transfer of interest in property-investment partnership).

Continuity of partnership

I4 5

For the purposes of this Act, a partnership is treated as the same partnership notwithstanding a change in membership if any person who was a member before the change remains a member after the change.

Partnership not to be regarded as unit trust scheme etc.

I5 6

A partnership is not to be regarded for the purposes of this Act as a unit trust scheme or an open ended investment company.