PARTNERSHIPS UNDER ATTACK?

摘要

Tax avoidance is headline news. Each week sees another story about multinationals reducing their corporation tax bills or the creative use of tax havens. The government has decided to set it sights on limited liability partnerships, where it considers some are not paying their fair share.In the Budget, the Chancellor announced plans to consult on measures to remove the presumption of self-employment from LLPs and to counter the artificial allocation of profits to partners. Since their introduction in 2001, over fifty thousand LLPs have been embraced by accountants, solicitors, the investment management industry and a range of professional practices. Any change to the taxation of LLPs and their members is likely to face stiff opposition.