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Client filing LLP Accounts and Tax Return

None of the properties under the LLP

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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. 

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By johngroganjga
19th Aug 2019 09:34

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.

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Replying to johngroganjga:
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By JimLittle
19th Aug 2019 10:25

Members of the LLP is the client and his son who has 5%

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Stepurhan
By stepurhan
19th Aug 2019 13:21

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?

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Replying to stepurhan:
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By JimLittle
19th Aug 2019 18:11

Company is owned by the client as well. I am not 100% sure why he has this convoluted setup. I think something to do with once the properties are under LLP he will transfer them to the Limited company and thought he could do it without transferring the property.

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Replying to JimLittle:
Stepurhan
By stepurhan
20th Aug 2019 09:07

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.

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