In a conversation with a client (who is in an LLP for which I do not act) he referred to some partners owning this asset and others owning that asset. I think he is fundamentally wrong. An LLP can own assets but the proportion in which each partner is responsible (for instance for CGT) must surely be in proportion to their partnership capital?
Does this community agree with me, or my client?
I think the natural consequence of my position is that when a new partner is admitted and introduces capital, the proportions of all other partners' ownership of assets will change. Say a property has been owned for some years prior, a Chargeable Occasion has not occurred on the admission of the new partner. If the property is later sold he will be responsible for a share of the CGT in proportion to his capital.
In other words, joining an LLP is not too unlike buying shares in a Limited Company - there may be an inherant, accrued liability that the new part owner 'buys into'. Again, does the community agree with me?
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Well it certainly doesn't have to be in proportion to the partnership capital - just think about it.