Introduction Overview Chapter 3: Limited partners and members of limited liability partnerships Section 60: Meaning of “contribution to the LLP”
230.This section defines “contribution to the LLP” for the purposes of section 59. It is based on sections 118ZB and 118ZC of ICTA.
231.An LLP formed under the Limited Liability Partnership Act 2000 is an entity with separate legal personality. That Act defines what is meant by contribution to a limited liability partnership.
232.Subsection (3) makes explicit the fact that capitalised undrawn profits are to be included in a company’s contribution. See Change 8 in Annex 1.
233.Subsection (6) explains how amounts that have been drawn out or received back by the company but have been taxed as profits of a trade are to be excluded from the calculation. See Change 9 in Annex 1.