What type of taxation applies to partners in a Limited Liability Partnership?

In a Limited Liability Partnership (LLP), taxation is applied based on each partner's share of income. This means that the income generated by the LLP is passed through to the individual partners, who then report their share of the income on their personal tax returns. Therefore, each partner is taxed individually on the profits they receive from the partnership, rather than the LLP itself being subject to corporate tax.

This structure provides flexibility and can lead to lower overall taxation for the partners, as they can take advantage of personal tax allowances and potential lower tax rates compared to corporate tax rates. The individual partners are responsible for their tax liabilities based on their income share, which aligns with the principles of transparency and pass-through taxation that characterize LLPs.