Yn ddilys o 06/04/2001
[F1Limited liability partnershipsU.K.
Textual Amendments
F1Ss. 118ZA-118ZD and preceding cross-heading inserted (6.4.2001) by Limited Liability Partnerships Act 2000 (c. 12), ss. 10(1), 19(1); S.I. 2000/3316, art. 2
118ZA Treatment of limited liability partnerships.U.K.
For the purposes of the Tax Acts, a trade, profession or business carried on by a limited liability partnership with a view to profit shall be treated as carried on in partnership by its members (and not by the limited liability partnership as such); and, accordingly, the property of the limited liability partnership shall be treated for those purposes as partnership property.
118ZB Restriction on relief.U.K.
Sections 117 and 118 have effect in relation to a member of a limited liability partnership as in relation to a limited partner, but subject to sections 118ZC and 118ZD.
118ZC Member’s contribution to trade.U.K.
(1)Subsection (3) of section 117 does not have effect in relation to a member of a limited liability partnership.
(2)But, for the purposes of that section and section 118, such a member’s contribution to a trade at any time (“the relevant time”) is the greater of—
(a)the amount subscribed by him, and
(b)the amount of his liability on a winding up.
(3)The amount subscribed by a member of a limited liability partnership is the amount which he has contributed to the limited liability partnership as capital, less so much of that amount (if any) as—
(a)he has previously, directly or indirectly, drawn out or received back,
(b)he so draws out or receives back during the period of five years beginning with the relevant time,
(c)he is or may be entitled so to draw out or receive back at any time when he is a member of the limited liability partnership, or
(d)he is or may be entitled to require another person to reimburse to him.
(4)The amount of the liability of a member of a limited liability partnership on a winding up is the amount which—
(a)he is liable to contribute to the assets of the limited liability partnership in the event of its being wound up, and
(b)he remains liable so to contribute for the period of at least five years beginning with the relevant time (or until it is wound up, if that happens before the end of that period).
118ZD Carry forward of unrelieved losses.U.K.
(1)Where amounts relating to a trade carried on by a member of a limited liability partnership are, in any one or more chargeable periods, prevented from being given or allowed by section 117 or 118 as it applies otherwise than by virtue of this section (his “total unrelieved loss”), subsection (2) applies in each subsequent chargeable period in which—
(a)he carries on the trade as a member of the limited liability partnership, and
(b)any of his total unrelieved loss remains outstanding.
(2)Sections 380, 381, 393A(1) and 403 (and sections 117 and 118 as they apply in relation to those sections) shall have effect in the subsequent chargeable period as if—
(a)any loss sustained or incurred by the member in the trade in that chargeable period were increased by an amount equal to so much of his total unrelieved loss as remains outstanding in that period, or
(b)(if no loss is so sustained or incurred) a loss of that amount were so sustained or incurred.
(3)To ascertain whether any (and, if so, how much) of a member’s total unrelieved loss remains outstanding in the subsequent chargeable period, deduct from the amount of his total unrelieved loss the aggregate of—
(a)any relief given under any provision of the Tax Acts (otherwise than as a result of subsection (2)) in respect of his total unrelieved loss in that or any previous chargeable period, and
(b)any amount given or allowed in respect of his total unrelieved loss as a result of subsection (2) in any previous chargeable period (or which would have been so given or allowed had a claim been made).]