S165 TCGA on transfer to LLP

S165 TCGA on transfer to LLP

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As an LLP is a body corporate but transparent for tax purposes, would a transfer of shares in a trading company get holdover relief under S165 TCGA?

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By johngroganjga
24th Apr 2015 14:17

If you are asking whether a transfer of shares by the LLP would attract the same relief as transfers of the same shares by the LLP's members individually, then I would have thought yes, by reason of the transparency you mention.

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By User deleted
24th Apr 2015 14:22

Where in s165 ...

... does it mention that relief is dependent upon the status of the transferee? (Other than residence)

EDIT - John, I'm not sure your reading of the query is correct, by virtue of the word "to" in the title. Then again, loose wording is commonplace on this forum.

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By johngroganjga
24th Apr 2015 14:28

Noted BKD. I did start my response with "if" in case I had not understood correctly what was being asked.

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By roger@acklands
24th Apr 2015 14:37

Thank you for your responses. S165 (3)(ba) states subsection 4 does not apply in the case of disposal of shares or securities if the transferee is a company.  Subsection 4 basically says the amount of chargeable gain will be reduced by the amount of gain held over.  This leads me to believe relief is not available on transfer of shares to a company but does this also include an LLP?

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By User deleted
24th Apr 2015 15:51

So the query is whether a 'company' under s.165(3)(ba) includes an LLP.

That takes us to s.288(1) where a company is defined to include 'any body corporate or unincorporated association but does not include a partnership..., 

Again s.59A(2) says for all purposes, except as otherwise provided, in the enactments relating to tax in respect of chargeable gains .....(c) references to a company do not include such a limited liability partnership.

 

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By User deleted
24th Apr 2015 15:59

My eyes are opened

There it was, right in front of me. My [feeble] excuse is that in all my years I have never had to think about a gift of shares from an individual to a company.

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