[F2Transfer for consideration of interest in property-investment partnership]U.K.
[F114(1)This paragraph applies where—
(a)there is a transfer of an interest in a [F3property-investment] partnership,
(b)consideration is given for the transfer, and
(c)the relevant partnership property includes a chargeable interest.
(2)The transfer—
(a)shall be taken for the purposes of this Part to be a land transaction;
(b)is a chargeable transaction.
(3)The purchaser under the transaction is the person who acquires an increased partnership share or, as the case may be, becomes a partner in consequence of the transfer.
(4)Consideration is regarded as given for the transfer—
(a)in a case within paragraph 36(a), if consideration in money or money’s worth is given by or on behalf of the person acquiring the interest;
(b)in a case within paragraph 36(b), if there is a withdrawal of money or money’s worth from the partnership by the person reducing his interest or ceasing to be a partner.
(5)The “relevant partnership property”, in relation to a transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
(a)any interest that was transferred to the partnership in connection with the transfer;
(b)a lease to which paragraph 15 (exclusion of market rent leases) applies.
(6)The chargeable consideration for the transaction shall be taken to be equal to a proportion of the market value of the relevant partnership property.
(7)That proportion is—
(a)if the person acquiring the interest in the partnership was not a partner before the transfer, his partnership share immediately after the transfer;
(b)if he was a partner before the transfer, the difference between his partnership share before and after the transfer.
[F4(8)In this paragraph—
“property-investment partnership” means a partnership whose sole or main activity is investing or dealing in chargeable interests (whether or not that activity involves the carrying out of construction operations on the land in question);
“construction operations” has the same meaning as in Chapter 3 of Part 3 of the Finance Act 2004 (see section 74 of that Act).]]
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
F2Sch. 15 para. 14 heading substituted (with effect in accordance with Sch. 24 para. 11(2)(4) of the amending Act) by Finance Act 2006 (c. 25), Sch. 24 para. 9(1)
F3Word in Sch. 15 para. 14(1)(a) inserted (with effect in accordance with Sch. 24 para. 11(2)(4) of the amending Act) by Finance Act 2006 (c. 25), Sch. 24 para. 9(2)
F4Sch. 15 para. 14(8) inserted (with effect in accordance with Sch. 24 para. 11(2)(4) of the amending Act) by Finance Act 2006 (c. 25), Sch. 24 para. 9(3)