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: roll-over relief and gifts hold-over relief

 

Roll-over relief

TCGA92/S156A

When a LLP ceases to be treated as a partnership, see CG27050, a member who has postponed a gain under TCGA92/S152 - TCGA92/S154 on acquiring an interest in an asset owned by the LLP will be treated as if a chargeable gain had accrued to him immediately before TCGA92/S59A (1) ceased to apply. The chargeable gain will be equal to the amount of the postponed gains that have not at that time come back into charge. Gains accruing to a non-corporate member before 6 April 2008 in consequence of TCGA92/S156A do not attract taper relief.

Guidance on roll-over relief is given at CG60250 onwards.

Gifts hold-over relief

TCGA92/S169A

When a LLP ceases to be treated as a partnership, see CG27050, a member who owns an asset or an interest in an asset which he acquired for a consideration that is treated as having been reduced under TCGA92/S165 (4)(b) or TCGA92/S260 (3)(b) will be treated as if a chargeable gain equal to the amount of the reduction accrued to him immediately before TCGA92/S59A (1) ceased to apply.

Guidance on hold-over relief is given at CG66630 onwards.

The reason for the treatment provided by TCGA92/S156A and TCGA92/S169A is that the postponed gains would otherwise fall out of charge in the future by reason of the LLP ceasing to be treated as a partnership. This could occur, for example, where an asset remains unsold when the LLP goes into liquidation and subsequently vests in the liquidator who would compute the gain arising on a disposal in the course of liquidation without regard to roll-over or hold-over relief claims made by the members. In view of this any gains that have been subject to such claims are charged on the members as if they accrued immediately before the LLP ceased to be treated as a partnership.