The controversial debate over taxation of limited liability partnerships (LLPs) has reached a decisive stage as changes are scheduled to press ahead on 6 April, while individuals have been allocated more time to contribute capital, HM Revenue & Customs (HMRC) announced late last Friday (21 February).
Having long been accused of unfairly treating all partnerships as tax avoidance vehicles, the Government has been taking meaningful steps to reset the relationship as it has ‘become evident that many LLPs have members who are engaged on terms similar to those of employees rather than traditional partners’, according to guidance notes published by HMRC last week.
