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Background

Limited Liability Partnerships (LLPs) are created in order to combine the flexibility of a partnership with the benefit of limited liability for its members. »Ê¹ÚÌåÓýappy provide a modern alternative business structure to on the one hand a company and on the other a general partnership. LLPs are particularly attractive to professional partnerships.

»Ê¹ÚÌåÓýapp LLP Act 2000, which takes effect from 6 April 2001, sets out the rules regarding

• »Ê¹ÚÌåÓýapp incorporation and conduct of LLPs
• »Ê¹ÚÌåÓýapp tax rules that in general treat LLPs as partnerships rather than as corporate bodies

»Ê¹ÚÌåÓýapp Finance Act 2001 contains further tax rules that modify and clarify the original rules. Without special tax rules LLPs would be taxed as companies because in commercial law they are corporate bodies. »Ê¹ÚÌåÓýapp special tax rules mean that the income and gains of LLPs are normally taxed on their members as if they were partners in an ordinary partnership.

Notification of LLPs

You may, in day to day work, be notified of the creation of a Limited Liability Partnership.

If you are notified of the creation of a LLP follow 'Limited liability partnerships (Action Guide)' at PAYE21141.