Tax Consultancy

Review of the remittance conditions and anti avoidance rules to determine if there has been a remittance by the LLP.

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Tax Question:

UK resident non dom with remittance base.

I have a UK LLP with 2 corporate offshore members. Beneficiaries of the corporate members (PIFs) are my children (minor).

I just bought through the LLP (with unremitted profits) a commercial property in UK. The corporate LLP members are registered into the non resident landlord scheme and receive the rent collected through the LLP without deductions.

My question.

Did we make a remittance to buy this property ? Not in my opinion but I would like a confirm. If a remittance has been made I could call for the non dom business investment relief but I fear this would make the LLP and offshore members resident in UK.

Answer: I'd get this looked at in detail. The provisions state that there will be a remittance where any money or other property is brought to, received, or used in the UK by the individual or by any other relevant person. It also applies where foreign income/gains are transferred to a non relevant person but then brought to the UK for the benefit of a relevant person. If the funds belong to the company then there shouldn't be a remittance if the purchase is by the company/LLP unless there was a transfer of the unremitted income to the company for the purpose of purchasing the property.