HMRC’s new consultation highlights a number of administrative changes which could make life easier for HMRC and taxpayers. However, a couple of the proposals to change substantive tax charges may have unwanted side effects, writes James McCredie (Macfarlanes).
What are the basics of partnership tax?
Before concentrating on the proposals in the consultation it is worth setting out a brief reminder of the basics of partnership taxation.
Partnerships are generally speaking transparent for UK tax purposes in that income and gains arising to the partnership are treated as arising to the partners in proportion to their rights to share in those profits; and the partnership itself does not have a tax liability.
These rules apply equally to general and limited partnerships and to limited liability partnerships which are carrying...
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HMRC’s new consultation highlights a number of administrative changes which could make life easier for HMRC and taxpayers. However, a couple of the proposals to change substantive tax charges may have unwanted side effects, writes James McCredie (Macfarlanes).
What are the basics of partnership tax?
Before concentrating on the proposals in the consultation it is worth setting out a brief reminder of the basics of partnership taxation.
Partnerships are generally speaking transparent for UK tax purposes in that income and gains arising to the partnership are treated as arising to the partners in proportion to their rights to share in those profits; and the partnership itself does not have a tax liability.
These rules apply equally to general and limited partnerships and to limited liability partnerships which are carrying...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
