I think what's relevant here is to be disabused from the idea that "money lent to your own LLP was always just capital introduced" and the incorrect consequences that would otherwise follow.
Ok, so its a loan to the LLP, but still included within Members' Interests in the Accounts, but in its own column.
When you say incorrect consequences, are you then saying that they should be deducting income tax from the interest via CT61s, or otherwise reporting the tax and interest to HMRC, rather than including the loan interest as a prior share within the profit shares?
Why on earth is this not accounted for as a loan as the Jersey people are correctly saying? Where does it say you cannot lend money to your own LLP or that it's automatically treated as capital? Perhaps you are getting confused with GPs, but even then loans to GPs are fine.
Would you also say that they should be deducting income tax from the interest via CT61s, or otherwise reporting the tax and interest to HMRC.
Because the lender is a member of the LLP, and we thought the accounting was therefore to add it to the Members' Capital. I didn't think it was a bizarre question!
My answers
Ok, so its a loan to the LLP, but still included within Members' Interests in the Accounts, but in its own column.
When you say incorrect consequences, are you then saying that they should be deducting income tax from the interest via CT61s, or otherwise reporting the tax and interest to HMRC, rather than including the loan interest as a prior share within the profit shares?
The Jersey Company is the giver of the loan, not the receiver.
Would you also say that they should be deducting income tax from the interest via CT61s, or otherwise reporting the tax and interest to HMRC.
Because the lender is a member of the LLP, and we thought the accounting was therefore to add it to the Members' Capital. I didn't think it was a bizarre question!
duplication!
No.