Special provisions relating to partnerships: Transfers of a chargeable interest to a partnership
Para11 applies in relation to a transfer of a chargeable interest to a partnership to which Para10 applies and where the whole or part of the chargeable consideration consists of rent.
Where a lease is granted (and Part 3 does not apply), the rules within FA03/Sch4 determine the consideration in relation to any premium and the rules within FA03/Sch5 determine the consideration in relation to any rent. FA03/Sch5 sets out how to calculate the ‘net present value’ of the future rental flow.
Where the rules in Part 3 do apply:
- a proportion of the market value of the premium will be chargeable [Paras10 and 12] together with
- a proportion of the net present value of the rent.
The net present value of the rent is determined under the rules provided in FA03/Sch5, as applied and amended by Para 11(2).
The proportion of the net present value chargeable is (100 - SLP) % [Para 11(2D)] where ‘SLP’ is the sum of the lower proportions calculated in accordance with Para12. Further information about the sum of the lower proportions can be found at SDLTM33550.