The Limited Liability Partnership Act 2000 introduced a new
corporate business entity to Great Britain - the Limited Liability
Partnership. The LLP Act took effect from 6 April 2001 in England,
Scotland and Wales. For LLPs registered in Northern Ireland similar
legislation took effect from 13 September 2004. LLPs have been
developed to combine the organisational flexibility of partnerships
with the benefit of limited liability for their members.
LLPs are in commercial law regarded as ‘bodies
corporate’ with legal personality separate from their members
and will be subject to aspects of company law. To exist a LLP must
be registered. Unlike limited partners in a Limited Partnership
registered under the Limited Partnership Act 1907 the members of a
LLP may take part in the day to day management of the business. The
liability of a member of a LLP for the LLP’s debts is
restricted to their capital contribution unless they are negligent
in relation to the work carried out for a client.
A LLP must have at least two registered members. And where a
person becomes a member of a LLP or ceases to be a member of a LLP
the LLP must give notice of this to the Registrar of Companies
within 14 days.
The relief available to members of a LLP for losses and
interest may be subject to special restriction - see
BIM72130 -
BIM72135.
If you require a copy of the LLP Act 2000 this may be
obtained from CT&VAT (Technical).
In this guidance an ‘old’ partnership means a
partnership within the meaning of the Partnership Act 1890 and a
Limited Partnership regulated by the Limited Partnership Act
1890.
