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SCHEDULE 17SPartnerships

PART 4STransactions involving transfer to a partnership

Transfer of partnership interest pursuant to earlier arrangementsS

17 (1)This paragraph applies where—S

(a)subsequent to the land transfer, there is a transfer of an interest in the partnership (“the partnership transfer”),

(b)the partnership transfer is made—

(i)if the land transfer falls within paragraph 12(1)(a) or (b), by the person who makes the land transfer,

(ii)if the land transfer falls within paragraph 12(1)(c), by the partner concerned,

(c)the partnership transfer is made pursuant to arrangements that were in place at the time of the land transfer,

(d)the partnership transfer is not (apart from this paragraph) a chargeable transaction.

(2)The partnership transfer—

(a)is to be treated as a land transaction, and

(b)is a chargeable transaction.

(3)The partners are taken to be the buyers under the transaction.

(4)The chargeable consideration for the transaction is taken to be equal to a proportion of the market value, as at the date of the transaction, of the interest transferred by the land transfer.

(5)That proportion is—

(a)if the person making the partnership transfer is not a partner immediately after the transfer, the person's partnership share immediately before the transfer,

(b)if that person is a partner immediately after the transfer, the difference between that person's partnership share before and after the transfer.

(6)The partnership transfer and the land transfer are taken to be linked transactions.

(7)Paragraphs 8 to 10 (responsibility of partners) have effect in relation to the partnership transfer, 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.

Modifications etc. (not altering text)

Commencement Information

I1 Sch. 17 para. 17 in force at 1.4.2015 by S.S.I. 2015/108 , art. 2