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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Gifts: Limited Liability Partnerships

For the purposes of Income Tax and Capital Gains Tax a limited liability partnership (LLP) is treated in the same way as a non-limited liability partnership, see CG27020+. The LLP is not recognised as an entity in itself while trading. The LLP itself is regarded as transparent for tax purposes and each member is assessed to tax on their share of the LLPs income or gains. All reliefs are available to the members of a LLP as if they were partners.

This situation applies until the LLP ceases to carry on a trade or business either at the end of a winding up process or by going into liquidation.

When a LLP ceases to trade, see CG27050, the partnership taxation transparency is switched off and the LLP reverts to its corporate status. TCGA92/S169A provides for rolled-over gains to be recouped in these circumstances, see CG27080.