Corporation Tax Act 2009 section 1273

Limited liability partnerships

Section 1273 sets out how limited liability partnerships (LLPs) are treated for corporation tax purposes, ensuring they are taxed in the same way as ordinary partnerships rather than as companies.

• When an LLP carries on a trade or business with a view to profit, its activities, transactions and property are all treated as belonging to its members as partners, not to the LLP itself
• Throughout the Corporation Tax Acts, LLPs meeting this condition are treated as firms (partnerships) and their members as partners, rather than as companies with shareholders
• The partnership treatment continues during temporary cessations of business and during a winding-up period following permanent cessation, provided the winding up is not connected with tax avoidance and is not unreasonably prolonged
• Partnership treatment ceases on the appointment of a liquidator, the making of a winding-up order by the court, or any equivalent event occurring under the law of a territory outside the United Kingdom