I met this potential client last week who owns three properties.
He needs to file LLP Accounts (which are due next week) and Tax Return
I know tax "normally" follows legal ownership but this client has been collecting rent from the properties (and paying costs) in the LLP and transferring it to the Limited company when the properties and mortgages are in his and ex-wife name. There are no agreements in place transferring the beneficial interest.
Will all the transactions just go to the Partners current account and nil partnership tax return filed ? We would just file self assessment tax return for the those three rental properties.
Replies (5)
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You don't mention who the members of the LLP are. The answer to your question might be one thing if they are the potential client and his ex-wife, and another if other people are involved.
You mention a limited company with something (the profit after costs?) being transferred to it.
What is the relationship of this company to the LLP and why is it getting anything transferred to it?
So the LLP is collecting rents on properties it does not own and transferring the rental profits from them to a company that is not a member.
I would politely walk away from this if I were you.