SCHEDULE 17Partnerships
PART 4Transactions involving transfer to a partnership
Transfer of partnership interest pursuant to earlier arrangements
I1C1 17
1
This paragraph applies where—
a
subsequent to the land transfer, there is a transfer of an interest in the partnership (“the partnership transfer”),
b
the partnership transfer is made—
i
if the land transfer falls within paragraph 12(1)(a) or (b), by the person who makes the land transfer,
ii
if the land transfer falls within paragraph 12(1)(c), by the partner concerned,
c
the partnership transfer is made pursuant to arrangements that were in place at the time of the land transfer,
d
the partnership transfer is not (apart from this paragraph) a chargeable transaction.
2
The partnership transfer—
a
is to be treated as a land transaction, and
b
is a chargeable transaction.
3
The partners are taken to be the buyers under the transaction.
4
The chargeable consideration for the transaction is taken to be equal to a proportion of the market value, as at the date of the transaction, of the interest transferred by the land transfer.
5
That proportion is—
a
if the person making the partnership transfer is not a partner immediately after the transfer, the person's partnership share immediately before the transfer,
b
if that person is a partner immediately after the transfer, the difference between that person's partnership share before and after the transfer.
6
The partnership transfer and the land transfer are taken to be linked transactions.
7
Paragraphs 8 to 10 (responsibility of partners) have effect in relation to the partnership transfer, but the responsible partners are—
a
those who were partners immediately before the transfer and who remain partners after the transfer, and
b
any person becoming a partner as a result of, or in connection with, the transfer.