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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 theirMoreLimited 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 corporateand 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 LLPs 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 taxedhow you can take advantage of this to reduce your UK taxes.what you need to know about LLPsten reasons why you should trade via a UK LLPhow to use a corporate partner to reduce taxhow LLPs can be used to reduce corporation taxtrading in the UK with a UK company/LLP and how to minimise taxusing an LLP to maximise Entrepreneurs Relief and reduce capital gains tax2014 changes to the tax treatment of LLPsAbout The Author The Author of Tax Planning With LLPs 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 Tax Planning With LLPs by Lee Hadnum
