How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3099
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

If the ownership of the parcel of agricultural land is transferred

Customer Question

If the ownership of the parcel of agricultural land is transferred to an LLP where the partners are the two original owners is there tax to pay? Would there be tax to pay if only the beneficial interest in the land but not the ownership was transferred to the LLP.?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Unlike a company a LLP is not a separate entity for income tax purposes. Profits and losses are passed through directly to the partners. Thus the transfer of the land holdings by the original participants into an LLP where they are the same partners would not create a gain taxable under the UK CGT regime. Thus in both the scenarios presented in the question there is no CGT liability created.
I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.

Thank you very much for your very succinct answer.

The gov.uk site states that an LLP is for "two or more persons associated for carrying on a lawful business with a view to profit".

In your view is the mere holding of an interest in agricultural land by the LLP sufficient. The land would eventually be sold at a profit in some years time.

Expert:  bigduckontax replied 1 year ago.
Yes, I am of the opinion that such a course of action complies and the holding sufficient.
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3099
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.

My wife and I have decided to transfer our agriculural land which we own jointly to a simple partnership (not an LLP) comprising us two as partners.. We need evidence, i.e. an agreement, that the transfer has taken place. Is it sufficient to say e.g. "I, Mrs A of xyz do hereby irrevocally transfer half of the beneficial interest in the land I own at (description) to the C Partnership for nothing of monetary value. And the same for Mr. A. I know this has to be signed as a deed..

Expert:  bigduckontax replied 1 year ago.
You could do a straight Land Registry transfer if it were registered land. Otherwise it would be better to employ a solicitor to arrange the conveyance to ensure that everything is correctly transferred.
Customer: replied 1 year ago.

Sorry I misled you. We are not making a transfer of ownership, only the beneficial interest in the land. The Land Registry would not be involved. I think the only point I need to clear up is that since the transfer is from two people as owners to the same two people as partners does there have to be any consideration for the transfer of beneficial interest to make the contract valid.

Expert:  bigduckontax replied 1 year ago.
Correct, or at worst a peppercorn consideration.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions