When a partnership converts to an LLP and the partnership had an obligation under an annuity for retired partners pensions I know that the existing partners can still claim higher rate relief for the payments without having to take the liability into the LLP (the liability would give the LLP an insolvent balance sheet) as long as the business of the original partnership continues.
My question is about the future. Would new members of the LLP be able to take on part of the obligation of the annuity outside the LLP and still get higher rate relief although they were never part of the original partnership.
What happens for retiring members of the LLP who were part of the original partnership, would the LLP be required to have a separate pension arrangement from that of the old partnership.
sam
