Can LLP Profit sharing ratio/Capital entitlement differ?
The scenario I am thinking of is as follows:
Legitimate husband and wife trading company (LTD 50:50 owned) becomes a member in a new LLP along with the husband and wife (so 3 members in total).
Profits are split, say, 90% to LTD and 5% each to H & W.
Capital entitlement 50:50 H & W only.
I am thinking this will channel income through to the LTD which can then distribute the LLP profits as dividends as and when it chooses and and asset disposals in the LLP (or of the LLP itself) will either attract Entrepreneurs relief and/or utilise the annual CGT exemption for H&W.
Any thoughts, comments, drawbacks?