HMRC’s approach and recent tribunal decisions on mixed member partnership taxation have led to some uncertainty for individual and corporate partners. Liesl Fichardt and Emily Au (Quinn Emanuel Urquhart & Sullivan) assess the current state of play and what can be done to minimise risks.
In limited liability partnerships with individual and corporate partners the remuneration of partners has long been a target for HMRC’s anti-avoidance efforts. These partnerships known as mixed membership partnerships are the subject of wide-ranging rules that operate to allow HMRC to re-allocate excess profit from the corporate partner to the individual partners for tax purposes.
The mixed membership rules were originally introduced in ITTOIA 2005 ss 849–850E with new provisions added by FA 2014 to tackle perceived abuse.
HMRC’s power to tax partnership profits that it deems to be income does not end with the mixed membership rules. Where those...
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:
HMRC’s approach and recent tribunal decisions on mixed member partnership taxation have led to some uncertainty for individual and corporate partners. Liesl Fichardt and Emily Au (Quinn Emanuel Urquhart & Sullivan) assess the current state of play and what can be done to minimise risks.
In limited liability partnerships with individual and corporate partners the remuneration of partners has long been a target for HMRC’s anti-avoidance efforts. These partnerships known as mixed membership partnerships are the subject of wide-ranging rules that operate to allow HMRC to re-allocate excess profit from the corporate partner to the individual partners for tax purposes.
The mixed membership rules were originally introduced in ITTOIA 2005 ss 849–850E with new provisions added by FA 2014 to tackle perceived abuse.
HMRC’s power to tax partnership profits that it deems to be income does not end with the mixed membership rules. Where those...
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:
