CG60286 - Reliefs: Replacement of Business Assets (Roll-over Relief): Qualifying Assets: Partnerships

Statement of Practice D11 바카라 사이트“ Rent Charged by Partners

ESC D23 바카라 사이트“ Partition of Land

Statement of Practice D11 바카라 사이트“ Rent Charged by Partners

Relief is available for assets used in the partnership trade which are owned not by the partnership but by an individual partner, even if rent is paid by the partnership to that partner.

ESC D23 바카라 사이트“ Partition of Land

Where partners exchange interests in land which is a single asset, see CG71803+, and which they own jointly, statutory roll-over relief cannot be claimed for the gain on disposal against the cost of the interest in the area of land retained. This is because there has not been the acquisition of or of an interest in other assets'. By concession, the area of land in which the interest is acquired should be treated as a new asset바카라 사이트™ provided that:

  • the purpose of the exchange is to enable the partnership to be dissolved

and

  • dissolution occurs immediately after the exchange

and

  • the ex-partners only retain an interest in land used by them in a new trading enterprise and do not retain any interest in that part of the land no longer used by them for trade purposes.

There is no requirement for each partner to become sole owner of part of the land following the exchange. This feature distinguishes this Concession from ESC D26 (in relation to disposals prior to 6th April 2010, see CG73015+) and the provisions of TCGA 1992/S248A - 248E (in relation to disposals on or after 6th April 2010, see CG73000+). For example, A, B and C jointly and equally owned land which they have farmed in partnership since its acquisition by them. A wishes to leave the partnership and to farm one-third of the land alone. B and C wish to remain in partnership farming the remaining two-thirds of the land. A바카라 사이트™s interest in two-thirds of the land is exchanged for B and C바카라 사이트™s interest in one-third of the land. Immediately afterwards, the partnership is dissolved and A commences farming on that part of the land now owned by A while B and C commence a new partnership farming the remaining two-thirds of the land now owned jointly by them. Depending on the valuations of the interests exchanged, relief is available to each of A, B and C.

If in the example, B and C had ceased to farm and had let out the area of land which they jointly retained, only A would be entitled to claim relief under ESC D23.