UK Limited Liability Partnerships and Taxation

Limited Liability Partnerships and Taxation

Introduction

UK Limited Liability Partnerships were first introduced to UK and non UK residents in 2001. A limited liability partnership (LLP) is formed under the Limited Liability Partnerships Act (LLPA) 2000.  A LLP is similar to a partnership, but the main difference is only the LLP itself is liable for the debts of the partnership.

The LLP must be registered at Companies House and is obliged to produce and file annual financial statements.  The rules regarding accounts and audit are similar to those that apply to private limited companies.

A LLP is given separate legal personality by LLPA 2000 and must have at least two, formally appointed, designated members (partners) at all times.  The minimum capital contribution is £ 2.

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