Is this a taxable remittance?

Is this a taxable remittance?

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My boss recently redeemed one of his overseas investments. The source of this investment was his offshore usd account. Unfortunately, this money was accidentally directed to the usd account of the LLP (the account is in london) of which he is the managing partner.

I have wired the money to the correct account and we have all the paperwork and emails to back up the fact that the transfer to the onshore account was a mistake.

Are the Hmrc going to try and be difficult and tax this? He is taxed as a non dom and has never submitted late returns or late payment

Thanks

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By User deleted
07th Sep 2015 13:46

Surely your boss has an accountant/tax adviser!  If he hasn't, he should engage one as soon as possible.

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By Portia Nina Levin
07th Sep 2015 14:08

Agree with the above

If you were in any way involved in the money being transferred to the LLP's account, and your question is "am I going to get in trouble?", the answer is probably.

HMRC's manuals at RDRM33350 confirm that a partnership (which would include an LLP for this purpose) is not a relevant person for the purpose of determing whether there is a remittance in the first instance.

However, even though it may only have been brief, the individual has effectively made a loan to the UK LLP, and the question is then whether that loan is in the UK. Since both the creditor and the debtor appear to be in the UK, and there is nothing to suggest that it is elsewhere, the loan would appear to be in the UK, giving rise to a remittance.

Business Investment Relief will not then be available though, because the LLP is not a company.

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By User deleted
07th Sep 2015 14:21

RDRM35140

I think HMRC are happy for you to undo the mistake RDRM35140

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