UK and International Tax news
HMRC Consults On Changes To LLP Taxation
Tuesday 28th May 2013
HMRC has issued a consultation document covering two aspects of the tax rules for partnerships: disguised employment and profit and loss allocation schemes.
As announced in the 2013 Budget, the Government is consulting on the detailed design of changes to two aspects of the partnership tax rules in order to prevent tax loss arising from disguising employment relationships through limited liability partnerships (LLPs) and from certain arrangements involving the allocation of profits and losses among partnership members.
The Government is proposing to change the tax rules in line with its principles and objectives for fairness and flexibility, and is seeking views on the detailed policy design and on possible impacts of the proposed changes by 9 August 2013.
HMRC will consider meeting interested parties to discuss the issues arising with the timing, format and venue of any meetings dependent on the level of interest expressed.
The Government proposes to introduce changes in the 2014 Finance Bill and in an NIC Bill to be introduced this year. The changes will take effect from 6 April 2014.
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