Property investment

21 January 2014

Issue: 4436 / Categories: Forum & Feedback , Investments , Land & property

The only activity of a limited liability partnership is as a property investment business. Tax losses are being carried forward with some reduction by subsequent profits. One of the partners now has personal property income, but the LLP losses cannot be set against it

My client is a limited liability partnership (LLP) with three partners who have equal shares. Its only activity is as a property investment business. Tax losses were incurred in past years which were carried forward.

However these losses have subsequently been reduced by more recent profits. Until recently none of the partners has been in receipt of other property income outside the LLP.

One of the parties now receives property income in their own right. The question is whether that partner can use their one-third share of the partnership losses brought forward to be set off against their other property income or can they only be used against their share of the future LLP profits?

Furthermore the partnership is about to purchase property on which capital allowances can be claimed. Can the allowances be claimed by some partners and not by others or must the claim...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.