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Where Taxpayers and Advisers Meet

Capital contribution to LLP on behalf of another member?

philly
Posts:56
Joined:Tue Sep 22, 2009 2:00 pm
Capital contribution to LLP on behalf of another member?

Postby philly » Wed Apr 26, 2017 9:28 am

Can the initial capital contribution to an LLP be made by its member on behalf of another member? There would be a written agreement between members regarding this arrangement. It will also be mentioned in the LLP agreement.

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Capital contribution to LLP on behalf of another member?

Postby AnthonyR » Sat Apr 29, 2017 2:32 pm

I don't see why not. If it's a cash contribution there shouldn't be any issues (aside from it being a PET for IHT purposes). Just be careful that there is not a transfer of a partnership interest as that is a disposal for CGT purposes (although whether there would be gain would be questionable).

Just be aware of tax implications if the contribution is a chargeable asset for CGT/SDLT/VAT etc (ie a property).
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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