The Law Society’s response to the proposed basis period reforms echoes many of the concerns raised by the tax and accounting professional bodies. In particular, the Law Society believes that a coherent plan is needed which recognises the various interlocking initiatives of relevance to these proposals; the commencement of the proposals should be pushed back by at least two years to allow more time for consultation and preparation; and several specific changes should be made to the proposed transitional provisions to allow for greater flexibility. The society noted the potential implications for international law firms operating in the UK, particularly the constraints on selecting their accounting dates, and additional complexity in relation to profit allocation, overlap relief and double taxation.
The Law Society’s response to the proposed basis period reforms echoes many of the concerns raised by the tax and accounting professional bodies. In particular, the Law Society believes that a coherent plan is needed which recognises the various interlocking initiatives of relevance to these proposals; the commencement of the proposals should be pushed back by at least two years to allow more time for consultation and preparation; and several specific changes should be made to the proposed transitional provisions to allow for greater flexibility. The society noted the potential implications for international law firms operating in the UK, particularly the constraints on selecting their accounting dates, and additional complexity in relation to profit allocation, overlap relief and double taxation.
