Home › Forums › Patrick Cannon › What is a Type A partnership transfer under para 14 of sch 15, 2003? › Reply To: What is a Type A partnership transfer under para 14 of sch 15, 2003?
Patrick
I think there is some ambiguity here. If the facts are that one of the new members is directly taking on liability for debt, then I agree that this amounts to actual consideration and therefore a Type A transfer. However, if the facts are that the LLP’s indebtedness to a 3rd party remains unchanged and the new member simply takes over a share in that LLP (and so, indirectly, a share of the indebtedness) I would not see that as the provision of actual consideration (particularly in the light of Swayne v CIR CA, [1900] 1 QB 172) and it is actual consideration not chargeable consideration which triggers Para 14(3A)(b) Sch 15.