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Mr Chancellor of the Exchequer
203
Page 579, line 27 [Schedule 39], at end insert—
| 20A | (1) | Schedule 6 (disadvantaged areas relief) applies to the transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 or 15 with these modifications. |
| (2) | For paragraph 3 substitute— |
| "3 | (1) | This Part of this Schedule applies to a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 of Schedule 15 if every chargeable interest comprising the relevant partnership property is a chargeable interest in relation to land that is wholly situated in a disadvantaged area. |
| (2) | This Part of this Schedule applies to a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 15 of Schedule 15 if the subject matter of the land transfer is a chargeable interest in relation to land that is wholly situated in a disadvantaged area.". |
| (3) | In paragraph 5, for sub-paragraphs (2) to (4) substitute— |
"(2) If the relevant consideration does not exceed £150,000 the transaction is exempt from charge.".
| (4) | For paragraph 6 substitute— |
| "6 | (1) | This paragraph applies where the land is partly non-residential property and partly residential property. |
| (2) | The non-residential proportion of the chargeable consideration for the transaction does not count as chargeable consideration. |
| (3) | The non-residential proportion is the proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land that is non-residential property. |
| (4) | If the relevant consideration does not exceed £150,000, none of the residential proportion of the chargeable consideration counts as chargeable consideration. |
| (5) | The residential proportion is the proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land that is residential property.". |
| (5) | For paragraph 7 substitute— |
| "7 | (1) | This Part of this Schedule applies to a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 of Schedule 15 if— |
(a) some (but not all) of the chargeable interests comprising the relevant partnership property are chargeable interests in relation to land that is wholly situated in a disadvantaged area, or
(b) any chargeable interest comprised in the relevant partnership property is a chargeable interest in relation to land that is partly situated in a disadvantaged area and partly situated outside such an area.
| (2) | This Part of this Schedule applies to a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 15 of Schedule 15 if the subject matter of the land transfer is a chargeable interest in relation to land that is partly situated in a disadvantaged area and partly situated outside such an area. |
(a) references to the disadvantaged-area proportion are to the proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land situated in a disadvantaged area;
(b) references to the advantaged-area proportion are to the proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land that is situated outside a disadvantaged area.".
| (6) | In paragraph 8, for "consideration attributable to the land situated in the disadvantaged area" substitute "disadvantaged-area proportion of the chargeable consideration". |
| (7) | In paragraph 9, for sub-paragraphs (2) to (4) substitute— |
"(2) If the relevant consideration does not exceed £150,000 none of the disadvantaged-area proportion of the chargeable consideration counts as chargeable consideration.".
| (8) | For paragraph 10 substitute— |
| "10 | (1) | This paragraph applies where the land situated in a disadvantaged area is partly non-residential property and partly residential property. |
| (2) | The non-residential proportion of the disadvantaged-area proportion of the chargeable consideration for the transaction does not count as chargeable consideration. |
| (3) | The non-residential proportion is the proportion of the disadvantaged-area proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land that is not residential property. |
| (4) | If the relevant consideration does not exceed £150,000, none of the residential proportion of the disadvantaged-area proportion of the chargeable consideration counts as chargeable consideration. |
| (5) | The residential proportion is the proportion of the disadvantaged-area proportion of the market value of the relevant property that, on a just and reasonable apportionment, is attributable to land that is residential property.". |
| (9) | After paragraph 11(1) insert— |
"(1A) In this Schedule—
"the land transfer" means the transaction that is the land transfer for the purposes of paragraph 15 of Schedule 15;
"the relevant partnership property" has the meaning given by paragraph 12(3) of Schedule 15;
(a) in the case of a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 of Schedule 15, means the relevant partnership property;
(b) in the case of a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 15 of Schedule 15, means the subject matter of the land transfer.
| (1B) | There is a transfer of an interest in a partnership for the purposes of this Schedule if there is such a transfer for the purposes of Part 3 of Schedule 15 (see paragraph 27 of that Schedule).". |
| (10) | Omit paragraphs 11(2) and 12. |
| 20B | (1) | Part 1 of Schedule 7 (group relief) applies to— |
(a) a transaction to which paragraph 10 applies, and
(b) a transaction that is a chargeable transaction by virtue of paragraph 15,
with these modifications.
| (2) | In paragraph 3(1)(a), for "the purchaser" substitute "a partner who was a partner at the effective date of the relevant transaction ("the relevant partner")". |
| (3) | In paragraph 3(1), for paragraph (b) substitute— |
"(b) at the time the relevant partner ceases to be a member of the same group as the vendor ("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 relevant 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,".
| (4) | In paragraph 3(3), for the words from "the transferee company" to the end substitute "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.". |
| (5) | In paragraph 3(4), omit the definition of "relevant associated company". |
| (6) | In paragraphs 4 to 6, for "the purchaser" (wherever appearing) substitute "the relevant partner". |
| 20C | (1) | Schedule 8 (charities relief) applies to the transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 or 15 with these modifications. |
| (2) | In paragraph 1(1), for "A land transaction is exempt from charge if the purchaser is a charity" substitute "A transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 12 or 15 of Schedule 15 is exempt from charge if the transferee is a charity". |
(a) for "the purchaser must intend to hold the subject-matter of the transaction" substitute "every chargeable interest held as partnership property immediately after the transfer must be held";
(b) in paragraphs (a) and (b) for "the purchaser" substitute "the transferee".
| (4) | In paragraph 1(3) for "the purchaser" substitute "the transferee". |
| (5) | In paragraph 2(1), for paragraph (b) substitute— |
"(b) at the time of the disqualifying event the partnership property includes a chargeable interest—
| (i) | that was held as partnership property immediately after the relevant transaction, or |
| (ii) | that is derived from an interest held as partnership property at that time,". |
| (6) | In paragraph 2(3)(a), for "the purchaser" substitute "the transferee". |
| (7) | In paragraph 2(3), for paragraph (b) substitute— |
"(b) any chargeable interest held as partnership property immediately after the relevant transaction, or any interest or right derived from it, being used or held otherwise than for qualifying charitable purposes.".
| (8) | For paragraph 2(4) substitute— |
"(4) In sub-paragraphs (1) and (2) an "appropriate proportion" means an appropriate proportion having regard to—
(a) the chargeable interests held as partnership property immediately after the relevant transaction and the chargeable interests held as partnership property at the time of the disqualifying event, and
(b) the extent to which any chargeable interest held as partnership property at that time becomes used or held for purposes other than qualifying charitable purposes.".
| (9) | After paragraph 2 insert— |
| 3 | (1) | There is a transfer of an interest in a partnership for the purposes of this Schedule if there is such a transfer for the purposes of Part 3 of Schedule 15 (see paragraph 27 of that Schedule). |
| (2) | Paragraph 25(1) of Schedule 15 (meaning of references to partnership property) applies for the purposes of this Schedule as it applies for the purposes of Part 3 of that Schedule.".'. |
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