The chancellor's statement today has included, as expected, an announcement that there will be a consultation document on the taxation of partnerships:
The Government says it will consult on measures to:
- remove the presumption of self-employment for limited liability partnership (LLP) partners, to tackle the disguising of employment relationships through LLPs; and
- counter the artificial allocation of profits to partners (in both LLPs and other partnerships) to achieve a tax advantage.
A consultation document will be published with proposals to address both issues in the spring, with legislation to be introduced in Finance Bill 2014.
There are other tax changes that have immediate effect that may affect partnerships and LLPs with corporates in their structure.
All professional firms will need to review their structures and internal arrangements.
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