SCHEDULE 7PARTNERSHIPS

PART 9APPLICATION OF EXEMPTIONS, RELIEFS, PROVISIONS OF TCMA AND NOTIFICATION PROVISIONS

Application of group relief

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1

Schedule 16 (group relief) applies to—

a

a transaction to which paragraph 13 applies, and

b

a transaction that is a chargeable transaction by virtue of paragraph 18,

with the following modifications.

2

Paragraph 8 has effect as if—

a

in sub-paragraph (2)(a), for ““the buyer”” there were substituted “ a partner who was a partner at the effective date of the relieved transaction (““the relevant partner””) ”;

b

for sub-paragraph (2)(b) there were substituted—

b

at the time the relevant partner ceases to be a member of the same group as the seller (“"the relevant time””), a chargeable interest is held by or on behalf of the members of the partnership and that chargeable interest—

i

was acquired by or on behalf of the partnership under the relieved transaction, or

ii

is derived from a chargeable interest so acquired,

and has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed.

c

in sub-paragraph (4), for the words from ““the transferee company”” to the end there were substituted “ or on behalf of the partnership and to the proportion in which the relevant partner is entitled at the relevant time to share in the income profits of the partnership ”;

d

in sub-paragraph (5), the definition of ““relevant associated company”” were omitted.

3

Paragraphs 9 to 14 have effect as if for ““the buyer”” (each time it occurs) there were substituted “ the relevant partner ”.