Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 21

Transfer of chargeable interest from a partnership

Schedule 7 paragraph 21 sets out how chargeable consideration is calculated when a chargeable interest is transferred out of a partnership to a current or former partner, or to a person connected with a current or former partner.

• Applies to transfers of chargeable interests from a partnership to a current or former partner, or to someone connected with a current or former partner
• Chargeable consideration is calculated as the market value of the interest multiplied by the sum of the lower proportions (SLP), subject to the special rule in paragraph 30 for partnerships consisting wholly of bodies corporate
• If property was held by the partnership before it dissolved or ceased to exist, it is treated as remaining partnership property until it is actually distributed
• Where rent forms all or part of the chargeable consideration, separate rules under Part 7 of Schedule 7 apply, and property investment partnerships may elect under paragraph 36 to disapply certain provisions