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Category: Law
Satisfied Customers: 116
Experience:  Expert
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I am seeking some advice for company tax questions in the

Customer Question

Hello I am seeking some advice for company tax questions in the UK
JA: Have you talked to a lawyer about this? In which country do you live? If different, which country is your legal question related to?
Customer: Not yet. We live in Indonesia. Holding german passports and running a LP in the UK
JA: What steps have you taken so far?
Customer: no steps, I just have some questions
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no I don't think so
Submitted: 12 days ago.
Category: Law
Customer: replied 12 days ago.
At this time we are running an UK LP, but we are planning to close this company and open an UK LLP. I am interested if this would make any changes for us in terms of tax. Because so far, we are not operating in the UK and we are not UK residents, which means for us it is tax free. Would this change if we open up an UK LLP?
Expert:  Maurizio replied 12 days ago.

Hello, I'm an adviser with JA and I will try to help you.

Please note the following:

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Expert:  Maurizio replied 12 days ago.


Can you please clarify about you circumstances?

Is the UK company you currently own dormant? Did you file with Companies House accounts for a dormant company?

Or does this company trade in other countries, but not in the UK?

Customer: replied 12 days ago.
Hello Maurizio, the LP is active atm. All I need to know is the difference in tax regulation for a UK LP and a UK LLP
Customer: replied 12 days ago.
As mentioned above, we are holding German passport, but we live in Indonesia. So far we haven't paid any company taxes in the UK with out LP, which is operating outside of the UK. Would this change if we change the company structure to a UK LLP?
Expert:  Maurizio replied 12 days ago.

By LP do you mean a private company limited by shares (in short, LTD)?

Customer: replied 12 days ago.
A Limited Partnership (LP) is a traditional partnership with limited liability.
A Limited Liability Partnership (LLP) combines the advantages of a traditional partnership with those of a limited company (LTD).
Expert:  Maurizio replied 12 days ago.

Yes, I am aware of that.

As you mentioned "company tax", I thought you had a company in the UK.

Customer: replied 12 days ago.
I would like to know what is difference for this two setups in terms of taxation for someone who is not a UK resident. For a UK LP and a UK LLP
Expert:  Maurizio replied 12 days ago.

The main point is that also an LLP does not have personality, which means that - unlike for a Limited Company - there is no Corporation Tax and non Company Tax Return to submit for an LLP, which is not taxable as an entity, while the members are.

As the LLP, as I said, is not taxable as an entity, makes it important to understand what is the position of the members, who are taxable instead.

Customer: replied 12 days ago.
what you mean with position of the members?
Expert:  Maurizio replied 12 days ago.

Unfortunately, as the LLP is not a legal entity separate from its members, the answer to this question is not straightforward and does require legal advice, for which this service is not intended.

Both the LP and the LLP lack "personality", therefore the attention is on whether the members have incomes that might be taxable in the UK, which depend on specific circumstances that should be assessed by a solicitor or a tax accountant.

Customer: replied 12 days ago.
I understand. Thank you very much for your help
Expert:  Maurizio replied 12 days ago.

You are welcome.

Please do not hesitate to contact JA again if you need help and you may ask to speak with me directly if you wish.