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UK government looks to amend limited partnership legislation

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london-295006_640The UK government have launched a consultation as it looks to make changes to existing limited partnership legislation.

Announced by the Treasury in its summer budget, the proposed changes to the Limited Partnership Act 1907 include defining permitted activities, eliminating nominal capital contributions, and amendments to the way LPs are registered, as well as disclosure obligations.

The consultation is seeking views from fund managers and other interested parties and closes on 5 October according to its website.

It suggests removing the requirement for an LP to make a nominal contribution and eliminate the liability placed on LPs should they withdraw their capital.

In addition, GPs will no longer be required to file a UK regulatory filing when it becomes an LP or when an LP reassigns its interest. LPs in a fund where the general partner has been removed would also be able to dissolve the partnership without a court order.

Private funds registering a limited partnership will also no longer have to supply information on capital contributions.

The changes will look to “eliminate many of the uncertainties and inconveniences associated with existing UK limited partnership law” according to the document.

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