Business Setup Question

[UltraHuge]

Just throwing this out there to see if there's someone on the board who can shed some light on this.

So, I'm in the process of setting up a Limited Partnership Corporation in London. With 3 total partners 2 US based 1 London based. The question I have, which I'm hoping someone has some knowledge on.

The initial earnings will obviously be taxed based off of the UK tax system. When we take payment (most likely via dividends) is there a way to avoid getting double taxed given the 2 U.S. based partners and obviously the UK based partner there'd be a personal income tax. Or is there a credit given based off of the taxes that have already been paid for the Corporation itself? I know there is a certain credit given based off of taxes paid in the UK. I'm simply not sure how that all works. Or if there is a way to minimize the tax given that the money will get taxed twice.

Hope that was enough information, any insight would be appreciated.


-Huge

 

[alexa36]

The taxation of a limited partnership in the UK will depend on the specific circumstances of the partnership and the individuals involved. In general, limited partners are not subject to UK tax on their share of the partnership's profits, but they may be subject to UK tax on other types of income they receive, such as dividends.
Regarding the US tax, when a US citizen or resident earns income from a foreign country, they may be subject to US taxation on that income. However, the US has tax treaties with many countries, including the UK, which can help to avoid double taxation. Under these treaties, the US typically allows a credit for taxes paid to the foreign country on income that is also subject to US taxation.
You should consult with a tax professional who can help you navigate the specific requirements and obligations of your partnership and advise you on how to minimize your tax liability. It is good idea to involve a tax professional experienced in international tax matters to advise on the best way to structure the partnership, as well as to ensure that you are in compliance with all relevant laws and regulations in both the UK and the US.