Partnership 1 is transferring some of the land it owns to Partnership 2.

A, B, C and D are equal partners in Partnership1 and are unconnected

A has a 50%, B a 25% and E a 25% share in Partnership 2 and are unconnected

This is both a transfer from a partnership to a partner, or connected person, and a transfer to a partnership from a partner, or a partner connected, therefore both Para 10 and 18 apply to the transaction.

In these circumstances, Para 23 provides that where both Para 10 and 18 apply the chargeable consideration will be the Para 10(2) calculation or that for para18(2) if greater.

Therefore both calculations need to be carried out to ascertain the higher charge.

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