Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 49

Transfer of a chargeable interest from a partnership

Schedule 7 paragraph 49 defines what constitutes a transfer of a chargeable interest out of a partnership for the purposes of the partnership provisions.

• A transfer from a partnership occurs when a chargeable interest stops being partnership property.
• It also occurs when a new interest is carved out of partnership property but is not itself partnership property.
• Both situations — an existing interest leaving partnership ownership and a new interest being created outside it — are treated as transfers from the partnership.
• This definition is important because such transfers may trigger a land transaction tax charge under the partnership rules in Schedule 7.