.png)
.png)
10 August 2010
Relief can be obtained by offset against partners’ other income
We thought you might be interested in the following item as it relates to limited liability partnerships (LLPs) and there always seems to be a lack of information on them.
Where an LLP pays interest, HMRC has recently confirmed to us that the correct treatment is to add back the interest in the partnership return and instead treat it as an annual commercial payment made by the partners.
This means tax relief can be obtained for the interest payments by offset against the partners’ other income and so the partner obtains tax relief for the interest even if the LLP is trading at a loss.
Jane Penny, Freeman & Partners, chartered accountants
