Readers’ forum: Tax consequences of setting up an LLP

We are getting a number of enquiries from prospective landlords about setting up limited liability partnerships (LLPs). The advice seems to be coming from ‘property clubs’ so I am not sure how much tax knowledge goes into the advice.

From my perspective the limited liability aside a traditional partnership behaves pretty much in the same way as an LLP and I cannot think of any particular tax advantage to going down the LLP route. 

I appreciate that each situation will have its own merits but am I missing something?

Query 20 34 – Apples and Pears.

Using an LLP does not mean that certain tax reliefs are available.

There are some key differences between a general partnership a limited partnership and a limited liability partnership (LLP). In general while the first two are usually treated for tax purposes as a collection of individuals...