Tax Planning With LLP's

Limited liability partnerships ('LLP') were introduced in 2001 and offer a cross between a partnership and company structure.

An LLP is simply a partnership, which provides the partners with the benefits of limited liability - thus ring-fencing their personal assets from any potential business creditors.

Although in general law a LLP is regarded as a 'body corporate'and is like a company, for tax purposes a LLP is normally treated as a 'partnership'.

Therefore an LLP will normally be regarded as transparent for tax purposes and each member/partner will be assessed to tax on their share of the LLP's income or gains as if they were members of a 'normal' partnership.

If a LLP carries on a trade each registered partner is taxable on the income they derive from the LLP as trading income.

This is a crucial difference from being a shareholder in a company. A company shareholder is regarded as a separate entity for both legal and tax purposes. An LLP however is a separate legal entity purely in legal terms.

What is in this book?

In this book we look at:

• what an LLP is and how it is taxed
• how you can take advantage of this to reduce your UK taxes.
• what you need to know about LLP's
• ten reasons why you should trade via a UK LLP
• how to use a corporate partner to reduce tax
• how LLP's can be used to reduce corporation tax
• trading in the UK with a UK company/LLP and how to minimise tax
• using an LLP to maximise Entrepreneurs Relief and reduce capital gains tax
• 2014 changes to the tax treatment of LLP's

About The Author

The Author of "Tax Planning With LLP's" is Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).
He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice.

He is now a full time tax author and the Editor at www.wealthprotectionreport.co.uk