[CFM77100] CFM77100 – Other tax rules on corporate debt: transfers of income streams: company transferors: partnership shares
Company transferors: partnership shares
CTA10/S756 prevents the transfers of income stream legislation from applying to virtually all transfers of the right to relevant receipts when a company reduces its share in the profits of a partnership of which it is a member. The legislation does, however, take effect if the partnership change is driven by avoidance.
The relevant amount will not be treated as income of the transferor where either or both of two conditions is fulfilled:
•Condition A is that there is a reduction of the transferor's share in the overall partnership property and the reduction in the transferor's entitlement to relevant receipts is in the same proportion.