Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 29

Transfer of chargeable interest from a partnership to a partnership

Schedule 7, paragraph 29 deals with how land transaction tax is calculated when a chargeable interest in land is transferred from one partnership to another partnership, where both the "transfer in" and "transfer out" rules would otherwise apply simultaneously.

• When a property interest moves from one partnership to another, and the transaction qualifies as both a transfer into a partnership and a transfer out of a partnership, special rules apply instead of the normal individual rules for each type of transfer.
• The chargeable consideration for the transaction is the higher of the two amounts that would have been calculated under the separate "transfer in" rules and the "transfer out" rules, ensuring the greater tax liability applies.
• Where rent forms all or part of the chargeable consideration, the tax on the rent element is similarly calculated as the greater of what would have been due under the "transfer in" rules and what would have been due under the "transfer out" rules.
• The disapplication of the zero rate band for non-residential leases applies to this type of transaction if it would have applied under the normal partnership lease provisions.