LLPs - corporate partners
If an LLP has 2 corporate partners, and the LLP pays the profits up to the companies, how is this shown in the company accounts (ie description), and would the company be classified as a trading company @ 21%, would it be classed as a CIHC with CT chargeable at the full rate?
Also, can anyone refer me to anything on the web that would help me understand on how to use LLPs for tax planning purposes.
Thanks
Corporate Partner and Close Investment Holding Companies
Giving the original question a bump as my question is exactly the same as the original poster. Although, I will also add the following
The corporate partner would receive the largest share of the profit and then distribute as dividends to shareholders who of course are also partners in the LLP.
Do any members have experience of HMRC challenging, I am advised that only area of concern is whether Ltd Co is "trading". Would the facts as they stand, i.e. receiving profits distributing dividends in return for the provision of directors/partners labour be enough.