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LLP selling shares in another company

LLP owns shares in another company, now selling them

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I have been asked by an acquaintance for some advice:

LLP owns shares in another company, 2 partners.  Selling shares and expecting a large injection of cash into the LLP.  How do the 2 partners extract the cash in the most tax efficient way?  Oh yes also one of the partners is only holding the cash in trust for someone else, how do they get their money out?  This is way beyond me. 


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By stepurhan
05th Jun 2018 12:53

Well LLPs are not companies, so that would be an important place to start. Given that, is the other "company" an LLP as well? (it's unclear whether the 2 partners you mention are in the LLP you are dealing with or in the other "company")

LLPs are tax transparent, so there is no such thing as extracting the cash tax efficiently. Any taxable profit made already falls on the members. If the cash is held in trust for someone else they can't extract it at all (because it is not theirs to extract).

Given your question is unclear and you already acknowledge this is "way beyond" you, the advice for your acquaintance is obvious. Tell them to find and pay for an accountant that understands LLPs.

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Hallerud at Easter
05th Jun 2018 12:58

They possibly each trip an individual CGT liability when the LLP sells the shares.

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