Client has a K-1 for 1065 for a property LLC based in Maryland
I'm very confused as to if this is treated as transparent or opaque
https://www.gov.uk/hmrc-internal-manuals/double-taxation-relief/dt19853a and https://www.gov.uk/hmrc-internal-manuals/international-manual/intm180030 - looks like it is opaque
But https://www.rossmartin.co.uk/companies/running-the-business/685-delaware... says transparent
Maybe I am just tired on a Friday afternoon !
Replies (2)
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US LLCs are generally treated as opaque for UK tax purposes. Ross Martin also says opaque in the summary but the facts in the Anson case entitled the owner to double tax relief as if the LLC were transparent.
The investment in the LLC would be best disclosed in the white space because of the UKs transfer of assets overseas rules. The LLC is a body corporate; it is not transparent. The Anson case did not consider and was not asked to consider if the LLC was opaque or transparent, so is of little help here.
Distributions from the LLC would be reported as UK taxable.