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LLP disincorporation?

what are main tax considerations if LLP converts to normal partnership?

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LLP client wants to convert to normal partnership, what would be main tax considerations?

only LLP asset is a lorry, both partners have drawings in excess of profits , trade would continue the same, same partners

I haven't ever gone this way before

Thanks in advance I'm sure you'll be super helpful

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By Tax Dragon
11th Jun 2020 06:08

LAURA BUTLER wrote:

only LLP asset is a lorry

Surely that's not true, is it? Isn't there a trade or business? A bank account? Possibly the right to use property... where is the lorry parked?

I'm sure you will get some super helpful replies (I can forecast what these might say, as well), but, if the only asset really is a lorry, some of the assumptions people will make in providing those super helpful replies might be wrong.

That (gaps in questions filled by assumption by the respondent) is one of the biggest problems with using forums like this to answer questions that ought to be addressed to your accountant.

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Replying to Tax Dragon:
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By frankfx
11th Jun 2020 07:23

My reading is that the OP is the accountant.

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By Tax Dragon
11th Jun 2020 07:34

OK. The "partner" threw me.

Shows how easy it is to make assumptions though! :-)

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By LAURA BUTLER
11th Jun 2020 07:13

Thanks, yes there is a trade and a small overdrawn bank account but it is a small business not much going on which is why it seems a bit overkill that’s it’s an LLP

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