I understand LLPs are required to file accounts with Companies House, and they can make an election under Section 480 to file dormant accounts if they have not traded in the period, and that this would apply to Investment Partnerships (LLPs used exclusively for holding a shared investment).
I also understand the members are required to register for self assessment and that a nominated Partner from the Partnership must file a Partnership Tax Return.
However, the HMRC Partnership Tax Return guide states that a Partnership Tax Return is for LLPs "unless the LLP does not carry on a business with a view to profit [...] in which case the LLP may need to make a Corporation Tax Return.".
I have 2 questions:
1. If the LLP is dormant, and therefore not carrying on business with a view to profit, is a Partnership Tax Return required?
2. If the LLP is an Investment Partnership between 2 individuals (both of whom already file Self Assessments), and therefore no corporation is party to it and the only entity is dormant, is a Corporation Tax Return required?
Many thanks!
Replies (2)
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If the partnership has not traded and a return has not been submitted then write to HMRC advising that the LLP was dormant and ask for the return to be withdrawn under TMA s 12AAA