The following Tax practice note Produced in partnership with Charles Goddard of Rosetta Tax provides comprehensive and up to date legal information covering:
Along with limited partnerships (LPs), limited liability partnerships (LLPs) are used as vehicles for holding UK real estate.
This Practice Note examines the direct tax (ie corporation tax, income tax and capital gains tax (CGT)) and annual tax on enveloped dwellings (ATED) treatment of a UK LLP in a property context. In this note CGT refers to capital gains tax and corporation tax on chargeable gains except where specified otherwise.
For further detail as to the tax treatment of an LLP in general, see Practice Note: Taxation of UK LLPs.
The direct tax treatment of an LP in a property context is considered in Practice Note: Tax treatment of a UK limited partnership.
The indirect tax (ie VAT and SDLT) treatment of an LLP differs from the direct tax treatment and is outside the scope of this Practice Note. For further details, see Practice Notes:
Partnerships and VAT, and
SDLT and partnerships—general principles and ordinary transactions
As with other types of partnerships, including LPs, an LLP is generally treated for direct tax purposes as transparent. This means that an LLP itself is not subject to tax; instead the members of the LLP (which partners in the LLP are referred to as) are each subject to tax on their proportionate share of the income, profits or gains of the LLP.
However, some specific rules apply to LLPs and there are (rare)
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
Practical completion marks the end of the construction period of a project, when the works are 'finished' and the employer can occupy and/or use them. Practical completion also typically marks the start of the defects liability period/maintenance period.As explained below, practical completion is an
The offence of causing grievous bodily harm with intentWounding or causing grievous bodily harm (GBH) with intent is triable only in the Crown Court on indictment. Elements of the offence Under the Offences against the Person Act 1861 (OATPA 1861), the prosecution must prove the defendant unlawfully
An intention to create legal relations is requiredThere are various situations in which a court will hold that an agreement is not binding because, though supported by consideration, it was made without any intention of creating legal relations (see, eg, Blue v Ashley).Did the parties intend to
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