Partnerships

Question 1

Notional loss

Answer 1

If partnership makes overall profit, but allocation of profits results in one or more partners making a loss, the allocation must be adjusted and the partner with loss will have nil amount taxable trading income

Question 2

Notional profit

Answer 2

If partnership makes overall loss, but allocation results in one / more partners making a profit, this is a notional profit. Loss allocation must be adjusted and partner with notional profit will have nil trading loss

Question 3

Limited liability partnership definition

Answer 3

Liability is limited to the amount of capital that they contribute to the partnership

Question 4

Salaried members of LLP are treated for IT, NI and CT as

Answer 4

employees, not partners

Question 5

Loss claim restriction for s64 and s72 for LLP partners

Answer 5

Relief cannot exceed amount of capital contributed to the partnership