Hi All,
And before I launch into the question, I would like to wish everyone a Merry Christmas!
The question...
I have recently taken on an LLP client for whom I have prepared accounts and the partnership return. No problems with any of that however... three of the partners are non-resident foreign nationals and I am in the process of preparing their personal ITRs. The situation is as follows:
1. The partners reside in (and are nationals of) Germany, USA and Denmark
2. The partners are not entitled to fixed drawings and no profit (or loss as is the case) has been allocated to them
3. To all intents and purposes, the returns are Nil with no income or expenditure from any streams
I'm a little rusty on "foreign nationals" to say the least but agreed to submit these returns as part and parcel of the LLP accounts/ return.
Clearly, I am confident in my abilities in submitting the core return and the partnership pages. However, my question is this...
..."Do I need to submit an SA109 supplementary schedule?"
The partners have never been resident in the UK and the number of days spent in the UK varies from none to a handful. They are not claiming UK tax allowances. I do not believe there to be any domicile issues. However, with no income in the UK, is there a requirement to claim double taxation relief or to opt for a remittance basis?
I'm sure I'm reading too much into this but, I also, understandably, don't want to leave any stone unturned.
I look forward to your comments and would like to thank you in advance.
Kind regards
Dave
Replies (4)
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I would hope that the entity has made a check the box election to in the US to assist the US citizen partner. You may want to enquire as you are advising the partnership.
An English LLP is a body
An English LLP is a body corporate under UK law, although treated for UK purposes as a partnership (i.e. transparent).
For US purposes an English LLP is opaque unless the entity has elected to be transparent.
The election is made at entity level, but the US person partner will hopefully have taken advice at the outset so you would do best to ask that person for details of advice already obtained.