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Readers' forum: Easy extraction?

10 November 2015
Issue: 4526 / Categories: Forum & Feedback , Budget/Finance Act

Advice is required on removing a company from a limited liability partnership.

My client is a limited liability partnership (LLP) with two individual partners (A and B) and a corporate partner (C Ltd). A and B are the shareholders of C Ltd.

A and B would like to wind up C Ltd because the rules that came in in April 2014 prevent them extracting profit tax efficiently from the LLP through C Ltd by way of dividends.

However the balance sheet of C Ltd is causing me some confusion. The company has a £70 000 investment asset in the LLP and this is reflected in the £70 000 capital account of C Ltd on the LLP’s books. The rest of the LLP balance sheet has a debtor of £5 000 owed by the partnership to the company and there is about £15 000 in the bank.

My questions are as follows.

  1. How should I deal with the £70 000...

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