PART IV PROVISIONS RELATING TO THE SCHEDULE D CHARGE

CHAPTER VII PARTNERSHIPS AND SUCCESSIONS

F2Limited liability partnerships

Annotations:
Amendments (Textual)

118ZA Treatment of limited liability partnerships.

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118ZBF3Restriction on relief: companies

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.

118ZC Member’s contribution to trade.

1

Subsection (3) of F5section 118 does not have effect in relation to a member of a limited liability partnership.

2

But, for the purposes of F6. . . 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 F7it, and

b

the amount of F8its liability on a winding up.

3

The amount subscribed by a member of a limited liability partnership is the amount which F9it has contributed to the limited liability partnership as capital, less so much of that amount (if any) as—

a

F9it has previously, directly or indirectly, drawn out or received back,

b

F9it so draws out or receives back during the period of five years beginning with the relevant time,

c

F9it is or may be entitled so to draw out or receive back at any time when F10it is a member of the limited liability partnership, or

d

F9it is or may be entitled to require another person to reimburse to F10it.

4

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

a

F11it is liable to contribute to the assets of the limited liability partnership in the event of F12the partnership's being wound up, and

b

F11it remains liable so to contribute for the period of at least five years beginning with the relevant time (or until F13the partnership is wound up, if that happens before the end of that period).

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118ZD Carry forward of unrelieved losses.

1

Where amounts relating to a trade carried on by a member of a limited liability partnership are, in any one or more F15accounting periods, prevented from being given or allowed by section F16. . . 118 as it applies otherwise than by virtue of this section (F17the member's“total unrelieved loss”), subsection (2) applies in each subsequent F18accounting period in which—

a

F19the member carries on the trade as a member of the limited liability partnership, and

b

any of F17the member's total unrelieved loss remains outstanding.

2

F20Sections 393A(1) and 403 (and section 118 as it applies in relation to those sections) shall have effect in the subsequent F21accounting period as if—

a

any loss sustained or incurred by the member in the trade in that F21accounting period were increased by an amount equal to so much of F22the 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 F23accounting period, deduct from the amount of F24the member's total unrelieved loss the aggregate of—

a

any relief given under any provision of F25the Corporation Tax Acts (otherwise than as a result of subsection (2)) in respect of F24the member's total unrelieved loss in that or any previous F23accounting period, and

b

any amount given or allowed in respect of F24the member's total unrelieved loss as a result of subsection (2) in any previous F23accounting period (or which would have been so given or allowed had a claim been made).