Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Limited liability partnerships: transfer of a partnership business to a LLP

For CG purposes the transfer of a business from a partnership to a LLP will not constitute a disposal by the partners of their interests in the original partnership’s assets unless their fractional interests in partnership assets are changed as a result of the transfer.

Annuities payable to retired partners of the original partnership

The transfer to a LLP of a partner’s rights to an annuity and/or the transfer of obligations to former partners in respect of annuities will not be regarded as a chargeable disposal by the original partnership provided that the rights remain substantially the same.

Similarly an annuitant who agrees to the substitution of a successor LLP as the payer of an annuity will not be regarded as making a chargeable disposal provided that the terms of the annuity remain substantially the same.

Guidance on annuities paid to retired partners is given at CG28400+.