SCHEDULE 7PARTNERSHIPS

PART 6OTHER PARTNERSHIP TRANSACTIONS

Transfer of chargeable interest from a partnership consisting wholly of bodies corporate

I130

1

This paragraph applies where—

a

there is a transaction to which paragraph 21 applies;

b

immediately before the transaction all the partners are bodies corporate;

c

the sum of the lower proportions is 75 or more.

2

Paragraphs 21 and 31 have effect with the following modifications.

3

Paragraph 21 has effect as if for sub-paragraphs (2) and (3) there were substituted—

2

The chargeable consideration for the transaction is taken to be equal to the market value of the interest transferred.

4

Paragraph 31(2) has effect as if for ““sub-paragraphs (3) to (6)”” there were substituted “ sub-paragraph (5) ”.

5

Paragraph 31 has effect as if sub-paragraphs (3), (4), (6) and (7) were omitted.