My client, when I took them on, was a straight forward micro trading company who did increasingly more work for an LLP. In recent years, the company has bought into the LLP and become a member. Each year there is the company's profit share from the LLP which is subject to Corporation Tax.
This year, however, the Partner statement from the LLP specifies an income line of, and I quote, "This transaction is the tranfer of the dividend amounts due from **** Ltd".
If my client was a shareholder in **** Ltd, the dividend income wouldn't be subject to Corporation Tax, but what is the implication of it having passed through the LLP from a Corporation Tax point of view?
I really don't even know where to start looking for the answer to this one! If anyone can point me in the direction of any legislation or guidance I'd be really appreciative.