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HMRC internal manual

Partnership Manual

From
HM Revenue & Customs
Updated
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Limited Partnerships and Limited Liability Partnerships - conversions: business transferred from company

The use of LLPs as a business structure is becoming more commonplace, and some taxpayers have considered that it would be beneficial to transfer a business previously carried on by a company into an LLP. There are no tax reliefs available when transferring a business from a company to an LLP. As such, the normal rules will apply. For example, it is likely that capital gains will be triggered. There will also be a cessation of the trade, meaning that any unutilised losses will not be available to be carried forward.