In a move which could curb law firms’ ability to share profits based on actual performance, yesterday’s (23 November) Autumn Statement by Chancellor Philip Hammond revealed plans to shake up profit sharing arrangements in partnerships.
Hammond (pictured) said that the government will ‘legislate to clarify and improve certain aspects of partnership taxation.’ The government is expected to propose partnerships must decide their profit-sharing arrangements at the beginning of the tax year rather than at the end, regardless of how individuals perform over the year.
