Special provisions relating to partnerships: Transfers of a chargeable interest from a partnership
Where Para18 applies to the transfer of a chargeable interest from a partnership, the chargeable consideration is computed as a proportion of the market value of the chargeable interest transferred.
That proportion is calculated as (100 - SLP) % where SLP is the ‘sum of the lower proportions’.
The SLP for Para18 is computed in accordance with the steps set out in Para20.
Generally, once this calculation has been completed, it determines the consideration chargeable on the purchaser, that is, the person receiving the property from the partnership.
However, where a chargeable interest is transferred from a partnership consisting wholly of bodies corporate the provisions of Para24 also need to be considered - see SDLTM33840.
When a chargeable interest is being transferred out of one partnership and into another, where both Para18 and Para10 could apply, the provisions of Para23 come into effect - see SDLTM33810.
In addition to the other situations where Para18 applies, a charge under this paragraph will arise when a partnership is ended and the assets are distributed to the former partners.
For this purpose, property that was partnership property before the partnership was dissolved or otherwise ceased to exist is treated as remaining partnership property until it is distributed. (Para18(7)).
This paragraph has effect subject to any election under Para12A - see SDLTM34060.