Associates are set to gain whoever wins
Law firm partners at major City firms are facing the prospect of a substantive hike in tax if the Labour Party forms a government in this month’s general election with current manifesto pledges expected to see many partners at Legal Business 100 firms with a five-figure increase in their annual tax bill.
Under Labour’s policy, the 45p rate of income tax will be raised to 50p for people earning over £150,000. According to numbers produced by Baker Tilly, this means that a partner earning £1m will pay £500,590 in income tax and national insurance – £42,060 more than the 2015/16 tax rate that currently stands at £458,530.
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