The Law Society has branded the government’s proposals for partnership tax reform ‘premature’, urging HMRC to avoid further ‘piecemeal’ legislation and postpone any changes until 2015.
The proposed changes, due to take effect on 6 April 2014, are intended to:
The Law Society has branded the government’s proposals for partnership tax reform ‘premature’, urging HMRC to avoid further ‘piecemeal’ legislation and postpone any changes until 2015.
The proposed changes, due to take effect on 6 April 2014, are intended to:
prevent tax loss arising from disguising employment relationships through limited liability partnerships; and
counter the manipulation of profit and loss allocations among partnership members to achieve a tax advantage.
Gary Richards, chair of the Law Society’s Tax Law Committee, said HMRC needs to refine its partnerships policy and legislate cohesively, or else risk creating uncertainty which will impact the UK’s reputation as an attractive business location.
‘This is a consultation where the underlying policy is difficult to discern’, Richards said. ‘Certainly, the scope is unclear. There is a real risk that measures to address perceived avoidance may render the UK an unattractive place for investment.’
The Law Society has branded the government’s proposals for partnership tax reform ‘premature’, urging HMRC to avoid further ‘piecemeal’ legislation and postpone any changes until 2015.
The proposed changes, due to take effect on 6 April 2014, are intended to:
The Law Society has branded the government’s proposals for partnership tax reform ‘premature’, urging HMRC to avoid further ‘piecemeal’ legislation and postpone any changes until 2015.
The proposed changes, due to take effect on 6 April 2014, are intended to:
prevent tax loss arising from disguising employment relationships through limited liability partnerships; and
counter the manipulation of profit and loss allocations among partnership members to achieve a tax advantage.
Gary Richards, chair of the Law Society’s Tax Law Committee, said HMRC needs to refine its partnerships policy and legislate cohesively, or else risk creating uncertainty which will impact the UK’s reputation as an attractive business location.
‘This is a consultation where the underlying policy is difficult to discern’, Richards said. ‘Certainly, the scope is unclear. There is a real risk that measures to address perceived avoidance may render the UK an unattractive place for investment.’
