Member leaving LLP

Member leaving LLP

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LLP member is exiting the partnership. Partnership holds no chargeable assets and the member's capital account is overdrawn. But a payment of £x from the continuing member (continuing as what I don't know or care as we don't act for the LLP) has been agreed to allow exiting member to walk away. How should this payment be treated?

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By johngroganjga
17th Apr 2016 16:46

How to treat it will follow how the LLP accounts for it, and for your clients already overdrawn capital account. As a guess, perhaps your client is getting a special profit share as a golden handshake, and the payment is the resulting credit balance on his capital account.

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