Non resident UK LLP - who/where Pay tax?

[ccmonger]

Hi,
I understand that non resident UK LLP is a pass-through meaning the partners will need to pay tax in their respective countries and not in the UK.

But what if the partners of the LLP are:
1. Georgian company
2. Individual

Can the partnership to set to 100% Georgian company ownership
0% individual ownership

And then only the georgian company will have to pay tax in Georgia?

Would be nice if anyone could clarify this subject.
Thank you!

 

[justanotherguy]

Can the partnership to set to 100% Georgian company ownership
0% individual ownership

Partnership still requires 2 or more co-owners.

Here are 2 ways you can do it:

1. Register 2 Georgian companies and put them as shareholders, but it gets complicated.
2. Register UK ltd, put the Georgian company as the owner, and get the Treaty non-resident' companies" status, more on it: Register a non-resident company for Corporation Tax

The LTD route is safer, because the partnership route can result in double taxation and tax issues.

 

[ccmonger]

Partnership still requires 2 or more co-owners.

Here are 2 ways you can do it:

1. Register 2 Georgian companies and put them as shareholders, but it gets complicated.
2. Register UK ltd, put the Georgian company as the owner, and get the Treaty non-resident' companies" status, more on it: Register a non-resident company for Corporation Tax

The LTD route is safer, because the partnership route can result in double taxation and tax issues.

What's the issue with
Partner 1 - 100% Georgian company ownership

Partner 2 - 0% individual ownership
?

 

[Sols]

A party isn't a partner if they own 0%.

 

[ccmonger]

A party isn't a partner if they own 0%.

What about 99/1?

 

[Sols]

What about 99/1?

Yes, that works.

 

[churumbelo]

I had a consultation with an accountant some time ago and asked him whether the members should register for self-assesment since are not resident nor have business in the UK, hence they should not be liable to pay tax in the UK. He said that's right, but if we ask (and obtain) for an exemption to the HMRC first.

I don't know if true or not.

 

[hastes]

I had a consultation with an accountant some time ago and asked him whether the members should register for self-assesment since are not resident nor have business in the UK, hence they should not be liable to pay tax in the UK. He said that's right, but if we ask (and obtain) for an exemption to the HMRC first.

I don't know if true or not.

any news for it?

 

[sknomad]

UK LLP is tax transparent entity. It means that all profit is passed through entity to the partners.
If there is any income that has source in UK, even forreign partners will be taxed in the UK. Only non UK sourced income will be untaxable in the UK.
Creating UK LLP for tax optimization makes sense just in case of all income of the LLP will be from outside of the UK.

 

[churumbelo]

any news for it?

I had my accountant request an exemption from HMRC last summer. However, HMRC has not yet acknowledged receipt of the letter, and my accountant has called them a couple of times. He was told that they have a huge backlog (more than six months) and will probably not process our letter until April. Note that I should have filed the self-assessment by January 31st. They are a joke.

In any case, my accountant said that they will not reply—HMRC does not respond to these kinds of requests. I then told him that they provide no legal certainty and might later claim that I failed to file the self-assessment and owe taxes. He replied that this should not happen and that it is standard procedure for HMRC. It is what it is.