Is a HMRC Tax Return required for a dormant LLP

Is a Partnership Tax Return (or CT return) required for a dormant LLP that has not traded?

Didn't find your answer?

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)

Please login or register to join the discussion.

By Paul D Utherone
26th Jul 2018 14:25

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and a return has not been submitted then write to HMRC advising that the LLP was dormant and ask for the return to be withdrawn under TMA s 12AAA

Thanks (1)
Replying to Paul D Utherone:
avatar
By ElisaM
26th Jul 2018 14:34

Thanks, does the year an investment is made in the Investment Partnership count as trading or is it still dormant? It did not do any other activity, it's just there to hold the investment.

Thanks (0)