SCHEDULE 17Partnerships

PART 4Transactions involving transfer to a partnership

Circumstances in which this Part applies

12

(1)

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

(3)

In this Part of this schedule—

“ the land transfer ” means the transaction mentioned in sub-paragraph (1), and

“ the partnership ” means the partnership to which the chargeable interest is transferred.

(4)

This paragraph has effect subject to any election under paragraph 35.