SDLTM33810 | Transfer of a chargeable interest from a partnership to a partnership - Para23

Transfers of a chargeable interest from a partnership to a partnership - Para 23

There are particular rules that apply in certain circumstances where a chargeable interest is transferred from a partnership to a partnership. These can be found at Para23.

Para23 applies where—

1. there is a transfer of a chargeable interest from a partnership to a partnership, and

2. the transfer is both

• a transaction to which Para10 applies (transfer of a chargeable interest to a partnership), and

• a transaction to which Para18 applies (transfer of a chargeable interest from a partnership).

Where Para23 applies, the direct application of both Para10 and 18 is dis-applied with the chargeable consideration taken to be the higher of the Para10 or 18 charges.

Para23 also deals with the situation where the whole or part of the chargeable consideration for the transaction is rent. The direct application of both Para11 and 19 is dis-applied, with the chargeable consideration taken to be the higher of the Para11 and 19 charges.