Share this content

tax implications LLP to ltd

does anyone have hands on experience of moving from a 2 partner llp with losses to a ltd co?

Didn't find your answer?

there is not too much to ask to this I'm interested in the position on one of the original partners and investors she didn't really want an LLP but that was what she got and now I am advising her to complete her first years losses and move to a limited liability company but I do want to ensure that tax losses are carried forward into the limited liability company of which she is going to be the sole director any help or pointers would be greatly appreciated

Replies (4)

Please login or register to join the discussion.

By Sarah Z
06th Aug 2020 20:55

You can't. They are separate legal entities, you cannot 'carry the loss over'

Thanks (0)
By Bernie Brandon
06th Aug 2020 21:15

Sounds very much for this prompt response which I do appreciate so I think the best I can do for her it's to see if she can at least not paying a personal tax on her share of the business so far as a partner nar-anon then when she becomes sold direct after new company she can just take it steady and make sure the business does not expand more quickly than it will be able to pay any properly due tax but hey best advise as always will be for her to keep separate vat and tax accounts for the company so I will have her do that

What made me raise this question was that I saw a suggestion that if it was the same business carried on from the same premises by one of the same persons she might be able to carry forward the tax relief but I do appreciate the significance of there being two separate legal entities here

Thanks (0)
Replying to Bernie Brandon:
By johngroganjga
07th Aug 2020 09:28

Why on earth would you advise her to limit the rate at which the business expands?

Thanks (0)
By Paul Crowley
06th Aug 2020 21:48

A bit of planning might be helpful if losses have not been relieved.
Not really enough detail to understand what are the real facts. Best speak to someone who has good tax knowledge

Thanks (0)
Share this content

Related posts