Tax Planning: Limited Liability Partnerships

Limited Liability Partnerships (LLP’s) have grown in popularity over the past few years and have become the structure of choice for many wealthy individuals in the UK. The key benefits of LLP’s are as follows:

-Ability to offset business losses against other income

-Increased flexibility, particularly when remunerating various partners in the business. Profit share distributions for example can be easier to allocate than under a Limited Liability Company.

-Ability to obtain tax relief on loan interest.

LLP’s can offer significant opportunities for tax planning and can help to minimise an individual’s tax bill. This structure can be extremely beneficial for start-up companies. So long as individuals are genuinely working in business via an LLP, they will be able to legally offset any losses against other personal income. 

For more information, please contact Belsize Accountancy for a free quotation.