SCHEDULE 7PARTNERSHIPS
PART 4TRANSACTIONS INVOLVING TRANSFERS TO A PARTNERSHIP
Transfer of chargeable interest to a partnership: general
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1
This paragraph applies where—
a
a partner transfers a chargeable interest to the partnership,
b
a person transfers a chargeable interest to a partnership in return for an interest in the partnership, or
c
a person connected with—
i
a partner, or
ii
a person who becomes a partner as a result of or in connection with the transfer,
transfers a chargeable interest to the partnership.
2
This paragraph applies whether the transfer is in connection with the formation of the partnership or is a transfer to an existing partnership.
3
The chargeable consideration for the transaction is taken to be equal to—
Figure 9 where—
MV is the market value of the chargeable interest transferred, and
SLP is the sum of the lower proportions.
4
Paragraph 14 provides for determining the sum of the lower proportions.
5
Part 7 applies if the whole or part of the chargeable consideration for the transaction is rent.
6
Paragraphs 9 to 11 (responsibility of partners) have effect in relation to a transaction to which this paragraph applies, 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.
7
This paragraph has effect subject to any election under paragraph 36.