LLP Tax Allocation Prior Year Amendment

LLP Tax Allocation Prior Year Amendment

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Hi All,

I have a client which is a LLP and in the previous tax year they made a loss which was allocated across the various tax partners.

They have realised this year, that one of the partners did not utilise the loss in the previous tax year, so they want to go back retrospectively for the previous year and reallocate that loss to another Partner instead who can then be the beneficiary of this loss.

I have told my client that this can not be done retrospectively, so they can't amend the partnership tax return and the individual tax return, is this indeed the case or can an amendment be made and corrected?

Also on a side note, for LLP is it correct that losses/profits can be allocated notionally or does it need to be done in line with equity contribution?

Regards

Alpha

Replies (1)

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By johngroganjga
24th Nov 2014 19:49

The tax loss has to be allocated in the same way as the actual loss. So it makes no sense for the partners to do what you say they want to do.

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