Mercer & Hole’s Business blog - Limited Liability Partnerships
Partnership losses - the impact of the new rules
Date: 16th May, 2007 | Author: Cathy Corns | Comments: 1
The new rules on partnership losses may have been designed to stop avoidance schemes but many "innocent" businesses may also be caught. The changes are wide-ranging and could affect transactions where no actual tax avoidance is involved. Of particular concern is the limit of £25,000.00 per year on the availability of relief on losses from trading partnerships for "non-active partners". The changes apply to conventional partnerships, Limited Liability Partnerships and Limited Partnerships. The key issue is what is a "non-active partner"? Basically a partner who spends an average of less than ten hours a week personally...
