When there is a transfer of a chargeable interest from a partnership and it is being transferred to another partnership, the transfer is not one in which both Part 4 and Part 5 of schedule 17 to the LBTT(S)A 2013 apply. If that were the case, there could in fact end up being two LBTT charges.
Instead, the taxpayer should calculate the LBTT that would be applicable if Part 4 applied, and the LBTT that would be applicable if Part 5 applied. The LBTT charged is based on the larger of the two chargeable considerations.
When a chargeable interest is transferred from a partnership that consists wholly of bodies corporate
If all the partners in a partnership are bodies corporate and the sum of lower proportions arrived at is 75 or more, the chargeable consideration for the land transfer is the market value of the interest that is transferred. It is possible that group relief (see LBTT3025) may be able to be claimed.
However, if any of the chargeable consideration includes rent, then the chargeable consideration is the Net Present Value of the rent over the term of the lease as well as the market value of the lease.