LLPs: End of farming partnerships?

HMRC's consultation on limited liability partnerships places corporate farm structures under scrutiny too, says Julie Butler

A recent announcement by HMRC has meant a very large potential problem for the current fashion in farming, 'corporate partners'. The mixed partnership can provide flexibility and yet save income tax and Class 4 National Insurance Contributions (NICs) through the corporate entity by not having to pay higher rate tax until profits are 'drawn down'.

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