Income and Corporation Taxes Act 1988

[F1 Limited liability partnerships U.K.

Textual Amendments

F1 Ss. 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.

F2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 S. 118ZA repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 87, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

[F3 118ZB Restriction on relief: companies U.K.

Section 118 has 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.]

Textual Amendments

F3 S. 118ZB substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 15 (with Sch. 2)

118ZC Member’s contribution to trade. U.K.

(1) Subsection (3) of [F4 section 118] does not have effect in relation to a member of a limited liability partnership.

(2) But, for the purposes of F5 . . . 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 [F6 it], and

(b) the amount of [F7 its] liability on a winding up.

(3) The amount subscribed by a member of a limited liability partnership is the amount which [F8 it] has contributed to the limited liability partnership as capital, less so much of that amount (if any) as—

(a) [F8 it] has previously, directly or indirectly, drawn out or received back,

(b) [F8 it] so draws out or receives back during the period of five years beginning with the relevant time,

(c) [F8 it] is or may be entitled so to draw out or receive back at any time when [F9 it] is a member of the limited liability partnership, or

(d) [F8 it] is or may be entitled to require another person to reimburse to [F9 it].

(4) The amount of the liability of a member of a limited liability partnership on a winding up is the amount which—

(a) [F10 it] is liable to contribute to the assets of the limited liability partnership in the event of [F11 the partnership's] being wound up, and

(b) [F10 it] remains liable so to contribute for the period of at least five years beginning with the relevant time (or until [F12 the partnership] is wound up, if that happens before the end of that period).

[F13 (5) F14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F4 Words in s. 118ZC(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(2) (with Sch. 2)

F5 Words in s. 118ZC(2) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(a), Sch. 3 Pt. 1 (with Sch. 2)

F6 Word in s. 118ZC(2)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(b) (with Sch. 2)

F7 Word in s. 118ZC(2)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(3)(c) (with Sch. 2)

F8 Words in s. 118ZC(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(4)(a) (with Sch. 2)

F9 Word in s. 118ZC(3)(d) substituted (with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(4)(b) (with Sch. 2)

F10 Words in s. 118ZC(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(a) (with Sch. 2)

F11 Words in s. 118ZC(4)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(b) (with Sch. 2)

F12 Words in s. 118ZC(4) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(5)(c) (with Sch. 2)

F13 S. 118ZC(5) inserted (retrospective to 2.12.2004) by Finance Act 2005 (c. 7), s. 73(3)(5)

F14 S. 118ZC(5) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 16(6), Sch. 3 Pt. 1 (with Sch. 2)

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 [F15 accounting periods], prevented from being given or allowed by section F16 . . . 118 as it applies otherwise than by virtue of this section ([F17 the member's]“total unrelieved loss”), subsection (2) applies in each subsequent [F18 accounting period] in which—

(a) [F19 the member] carries on the trade as a member of the limited liability partnership, and

(b) any of [F17 the member's] total unrelieved loss remains outstanding.

(2) [F20 Sections 393A(1) and 403 (and section 118 as it applies] in relation to those sections) shall have effect in the subsequent [F21 accounting period] as if—

(a) any loss sustained or incurred by the member in the trade in that [F21 accounting period] were increased by an amount equal to so much of [F22 the member's] 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 [F23 accounting period], deduct from the amount of [F24 the member's] total unrelieved loss the aggregate of—

(a) any relief given under any provision of [F25 the Corporation Tax Acts] (otherwise than as a result of subsection (2)) in respect of [F24 the member's] total unrelieved loss in that or any previous [F23 accounting period], and

(b) any amount given or allowed in respect of [F24 the member's] total unrelieved loss as a result of subsection (2) in any previous [F23 accounting period] (or which would have been so given or allowed had a claim been made).]

Textual Amendments

F15 Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(a) (with Sch. 2)

F16 Words in s. 118ZD(1) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(b), Sch. 3 Pt. 1 (with Sch. 2)

F17 Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(c) (with Sch. 2)

F18 Words in s. 118ZD(1) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(d) (with Sch. 2)

F19 Words in s. 118ZD(1)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(2)(e) (with Sch. 2)

F20 Words in s. 118ZD(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(a) (with Sch. 2)

F21 Words in s. 118ZD(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(b) (with Sch. 2)

F22 Words in s. 118ZD(2)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(3)(c) (with Sch. 2)

F23 Words in s. 118ZD(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(a) (with Sch. 2)

F24 Words in s. 118ZD(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(b) (with Sch. 2)

F25 Words in s. 118ZD(3)(a) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 17(4)(c) (with Sch. 2)