Transfer of chargeable interest to a partnership consisting wholly of bodies corporateU.K.
[F113(1)This paragraph applies where—
(a)there is a transaction to which paragraph 10 applies;
(b)immediately after the transaction all the partners are bodies corporate;
(c)the sum of the lower proportions is 75 or more.
(2)Paragraphs 10 and 11 have effect with these modifications.
(3)In paragraph 10, for sub-paragraphs (2) to (5) substitute—
“(2)The chargeable consideration for the transaction shall be taken to be equal to the market value of the interest transferred.”.
(4)In paragraph 10(6), for “sub-paragraphs (2) to (5)” substitute “ sub-paragraph (2) ”.
(5)In paragraph 11, omit sub-paragraphs (3) and (6) to (8).
(6)In paragraph 11, for sub-paragraph (4) substitute—
“(4)If there is chargeable consideration other than rent, that chargeable consideration shall be taken to be equal to the market value of the interest transferred.”.
(7)In paragraph 11, for sub-paragraph (5)(b) substitute—
“(b)that chargeable consideration shall be taken to be equal to the market value of the interest transferred.”.
(8)Paragraph 12 provides for determining the sum of the lower proportions.]
Textual Amendments
F1Sch. 15 Pt. 3 substituted (with effect in accordance with Sch. 41 para. 3 of the amending Act) by Finance Act 2004 (c. 12), Sch. 41 para. 1