SCHEDULE 7PARTNERSHIPS
PART 7APPLICATION OF PARTS 5 AND 6 IN RELATION TO LEASES
Transfer of chargeable interest to or from a partnership: chargeable consideration including rent
I131
1
This paragraph applies in relation to a transaction to which paragraph 13 or 21 applies where the whole or part of the chargeable consideration for the transaction is rent.
2
Part 5 of Schedule 6 (leases: calculation of tax chargeable) has effect with the modifications set out in sub-paragraphs (3) to (6).
3
Paragraph 29 has effect as if—
a
in Step 1, for ““the net present value (the ““NPV””) of the rent payable over the term of the lease”” there were substituted “
the relevant chargeable proportion of the net present value (the ““NPV””) of the rent payable over the term of the lease
”
;
b
in Step 2, for ““the NPV”” there were substituted “
the relevant chargeable proportion
”
.
4
Paragraph 30 has effect as if—
a
in Step 1, for ““the total of the net present values (the ““TNPV””) of the rent payable over the terms of all the linked leases”” there were substituted “
the total of the relevant chargeable proportions of the net present values (the ““TNPV””) of the rent payable over the terms of all the leases
”
;
b
in Step 2, for ““the TNPV”” there were substituted “
the total of the relevant chargeable proportions
”
;
c
in Step 4, for ““the NPV”” substitute “
the relevant chargeable proportion
”
and for ““the TNPV”” substitute “
the total of the relevant chargeable proportions
”
.
5
Paragraph 33(1) has effect as if for ““paragraphs 34 and 35”” there were substituted “
paragraphs 13 and 21 of Schedule 7 and paragraphs 34 and 35 of this Schedule
”
.
6
Paragraph 36(1)(a) has effect as if—
a
in sub-paragraph (i) for ““the annual rent”” there were substituted “
the relevant chargeable proportion of the annual rent
”
;
b
in sub-paragraph (ii) for ““the total of the annual rents”” there were substituted “
the relevant chargeable proportion of the total of the annual rents
”
.
7
For the purposes of paragraphs 29, 30 and 36 of Schedule 6 as modified by this paragraph, the relevant chargeable proportion is—
Figure 11 where SLP is the sum of the lower proportions.
8
The following paragraphs apply for determining the sum of the lower proportions—
a
in the case of a transaction to which paragraph 13 applies, paragraph 14, and
b
in the case of a transaction to which paragraph 21 applies, paragraph 22.
9
In the case of a transaction to which paragraph 21 applies, this paragraph is subject to paragraph 30.