Need to register non-resident partnership with UK investment

by **Incredulum** on Mon Jul 18, 2011 5:58 pm

A non-UK partnership holds a UK property.

The partners are a mixture of UK residents and non-UK residents.

Does the partnership need to register with HMRC with form SA400?

Thanks

by **section 44** on Mon Jul 18, 2011 6:13 pm

Without looking it up (assuming that it is an NRLS question), I would say yes. Any argument against would presumably be based around the tax transparency of the partnership (assuming that it is a partnership treated as transparent by HMRC). However, unlike with say a Baker trust, the property letting business would be at the level of the partnership rather than at the level of the investors.

Presumably the partnership has legal personality (i.e. doesn't require say a general partner to hold the property for and on behalf of the partnership).

by **Incredulum** on Tue Jul 19, 2011 6:05 pm

Thanks for your thoughts.

Yes it is a transparent partnership (a Jersey LP). And I guess it is a NRLS question.

The partnership in fact holds the property in a JPUT (Jersey Property Unit Trust) - a Baker trust. I do not think that changes the analysis as the business remains at the level of the partnership, not the investors.

by **Findern** on Wed Aug 17, 2011 12:08 pm

Well, I am wondering about what you have stated. Actually, I have no experience with the partnership
property in UK, but I am curious to know that how that registration is essential. If you could help me!
regards

by **maths** on Thu Aug 18, 2011 2:02 pm

I would say that it needs to so register.

Assuming, as it appears, the partnership is managed and controlled abroad then only UK source profits/income need be reported. However, for the UK resident partners their income will include both UK and non-UK source profit (assuming UK domiciled).