Special provisions relating to partnerships: Transfers of a chargeable interest from a partnership
Para19 applies in relation to a transfer of a chargeable interest from a partnership to which Para18 applies and where the whole or part of the chargeable consideration consists of rent.
Where a lease is granted (and the special partnership rules in Part 3 do 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 within FA03/Sch15/Part3 do apply:
- a proportion of the market value of the premium will be chargeable [Paras18 and 20] 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 19(2).
The proportion of the net present value chargeable is (100 - SLP) % ( Para19(2D)) where ‘SLP’ is the sum of the lower proportions calculated in accordance with Para20 and the partnership share is determined by Para21. Further information about the sum of the lower proportions can be found at SDLTM33750.