ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL Contribution to an LLP
The source legislation provides that the contribution to an LLP is the greater of the amount which the individual has contributed to it as capital (so far as it is not recoverable) and the amount of the individual’s liability on a winding up (see section 118ZC(2) of ICTA).
But the total amount the individual has at risk in an LLP is, in principle, the sum of what has been contributed as capital to the LLP and the additional amount that the individual could be called on to meet in a winding up of the LLP.
The Act provides that an individual’s contribution to a LLP takes account of the total amount at risk, namely any amounts contributed as capital to the LLP and any further amounts for which the individual is liable on a winding up. See section 108(7).