If the partners in an LLP incorporate, are their companies entitled to the small rate of CT as the companies are not trading as such for IR35 and VAT purposes.
Any replies or pointers in the right direction would be gratefully received.
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Are the companies to be partners?
If so, then the companies are trading as members of a partnership (albeit a limited liability one), The taxation of corporate members is the same because, whilst a separate legal entity, an LLP is transparent for tax purposes.
Well
An LLP whilst active is treated as a partnership for all taxation purposes and so, at that stage, would have no impact on the CT payable in any companies which the members of the LLP controlled, unless that is they are already associated, in which case the LLP has no effect anyway.
Before an LLP has a business it IS a company but as inactive is a dormant company and so ignored for the purpose of CT liabilities.
If an LLP were to be formally wound-up or an informal winding-up be unreasonably delayed it will again be treated as a company and so be liable to CT but it is unlikely to have a business and so would not be counted for CT purposes for other companies, although it would have a CT liability itself on any income or gain arising.
If, although not suggested in the question but alluded to in an answer, if a company is a member of an LLP, profits will need to be calculated twice, under both IT and CT purposes but it should be noted that in that case only the company is entitled to an AIA.