Corporation Tax Act 2009 section 92A

Deductions in relation to salaried members

Section 92A allows a limited liability partnership to claim a tax deduction for employment-related expenses it pays in respect of a salaried member, where the member is treated as an employee for tax purposes.

• Where an LLP member is classified as a "salaried member" and treated as an employee for tax purposes, the LLP may deduct expenses it pays in connection with that member's deemed employment
• The deduction applies only where no other deduction would otherwise be available for the same payment when calculating the LLP's trading profits
• The deduction is subject to the usual restrictions: it cannot cover capital expenditure, expenses not wholly and exclusively for the trade, business entertainment and gifts, or unpaid social security contributions
• The provision also extends to property businesses carried on by LLPs, not just trading activities