Salaried Member: Condition C: Deemed contributions: failure to make the payment
If the individual fails to make all, or part, of the contribution within that period, then the determination of whether Condition C was met is revisited as at the time it was originally made without taking into account so much of the deemed contribution as was not in fact paid.
This example shows how the Deemed Contribution rule works if the member does not in fact make the contribution which was expected.
M is an existing member of an LLP at 6 April 2014 who has not previously contributed capital to the LLP. On 5 April 2014, M gives an undertaking to the LLP that he will make a contribution of £50,000 on 5 July 2014.
The question whether Condition C is met is determined on 6 April 2014 and takes into account the deemed contribution of £50,000 resulting in Condition C not being met. M fails to make any of the contribution by 5 July 2014.
On 6 July 2014, the question of whether Condition C was met at 6 April 2014 is revisited. M is not treated as having made a contribution so Condition C is met. If M also meets Conditions A and B on 6 April 2014, then M is treated as a Salaried Member from that date.