LLP tax reforms: don't fall foul of the new rules

LLPs are simply not the avoidance vehicles HMRC seems to think but there are still a number of pitfalls in the new rules, explains Tina Riches, national tax partner at Smith & Williamson

Alongside the Finance Bill 2014 explanatory notes, HMRC has published some updated LLP guidance on the draft legislation on the taxation of partnerships and their members, due to come into effect from 6 April.

Originally trailed as an anti-avoidance measure, the end result is a melange of revenue-raising measures, red tape and big sticks.

However, to give HMRC its due, it has listened to quite a few of the concerns expressed by business around the uncertainty inherent in the first draft of the legislation and guidance. As a result, there have been some useful changes.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | HMRC delays full rollout of payrolling for benefits in kind

Business | King’s Speech outlines closer trade ties with EU, less red tape

HR | Changes to day one employee rights from 6 April

Business | Warning on tax adviser regulation by the backdoor

Tax | Clear guidance on HMRC register of tax agents urgently required, warns CIOT

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily