In this week’s Q&A, David Woolley, adviser at Croner VIP Tax Team, explains the capital gains tax implications when members of a limited liability partnership want to sell out
Q. We act for a limited liability partnership (LLP) and it owns four commercial properties let out to various third parties. There are two unconnected members of the LLP sharing capital and profits 50/50, and they want to part ways and take two properties each.
One of the members has mentioned that they then want to transfer their two properties to a personal company. What tax issues could arise?
A. I gather that the members are not incorporating the LLP rental properties but are intending to extract the properties from the LLP, transfer them into personal ownership and then one of the owners then wants to transfer their personally owned properties to a personal company.
