BERNIE

Registered with Property118.com
Sunday 1st September 2019


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BERNIE

15:27 PM, 1st September 2019
About 7 months ago

Tax Planning Bodge Jobs - Limited Liability Partnerships "LLP's"

There is a company out there (I suspect it's the one that's being referred to in the previous comments) that explains their 'scheme' as follows: The equity and income is given to an LLP. The members of the LLP are yourself, wife/husband/civil partner and maybe son/daughter along with a limited company that said persons are also the owners of (corporate member). By doing this it is claimed that HMRC now recognise this structure as converting an investment business into a trading business.

I view this as palpable nonsense and am amazed so many intelligent people are falling for it. HMRC are very clear in the way they tax businesses. An investor with a property investor business must account for their rental profits under the specific rules applying to property income. It makes no difference to HMRC as to how complicated the ownership structure of a business is. Simply changing the ownership structure of of a business does not change it from being an investment business to a trading business.

How on Earth these charlatans are getting away with this is a mystery to me. The people falling for the 'scheme' are obviously not doing even the most basic due diligence and are falling for a salesman's spin. A salesman incidentally whose previous business went bust owing over £300,000.

It is only a matter of time before HMRC coming knocking on the door. I wouldn't like to be one of the victims of this 'scheme' when that day comes.

Well done Mark for warning other potential victims. Keep up the good work.... Read More