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
22(1)Where this paragraph applies, the partnership share attributable to the partner is determined as follows:—U.K.
Step One
Find the partner’s actual partnership share on the relevant date.
In a case falling within paragraph 21(2)(a), the relevant date—
(a)if the partner was a partner on 19th October 2003, is that date;
(b)if the partner became a partner after that date, is the date on which he became a partner.
In a case falling within paragraph 21(2)(b), the relevant date—
(a)if the partner was a partner on the effective date of the transfer of the relevant chargeable interest to the partnership, is that date;
(b)if the partner became a partner after that date, is the date on which he became a partner.
Step Two
Add to that partnership share any increases in the partner’s partnership share which—
(a)occur in the period starting on the day after the relevant date and ending immediately before the transaction to which paragraph 18 applies, and
(b)count for this purpose.
The result is the increased partnership share.
An increase counts for the purpose of paragraph (b) only if—
(i)where the transfer which resulted in the increase took place on or before the date on which the Finance Act 2004 was passed, the instrument by which the transfer was effected has been duly stamped with ad valorem stamp duty under the enactments relating to stamp duty;
(ii)where the transfer which resulted in the increase took place after that date, any tax payable in respect of the transfer has been duly paid under this Part.
Step Three
Deduct from the increased partnership share any decreases in the partner’s partnership share which occur in the period starting on the day after the relevant date and ending immediately before the transaction to which paragraph 18 applies.
The result is the partnership share attributable to the partner.
(2)If the effect of applying Step Three would be to reduce the partnership share attributable to the partner below zero, the partnership share attributable to the partner is zero.
(3)In a case falling within paragraph 21(2)(a), if the partner ceased to be a partner before 19th October 2003, the partnership share attributable to the partner is zero.
(4)In a case falling within paragraph 21(2)(b), if the partner ceased to be a partner before the effective date of the transfer of the relevant chargeable interest to the partnership, the partnership share attributable to the partner is zero.
(5)Paragraph 21(4) (relevant chargeable interest) applies for the purposes of this paragraph.]