The government has confirmed that it has asked the Office of Tax Simplification (OTS) to carry out a review of all tax legislation relating to partnerships.

The OTS is starting with an initial review to identify the main complexities around partnership taxation, with the aim of identifying priority areas for a more detailed review which will lead to specific recommendations. Its initial findings are due by this autumn.

It says it will review the evidence to find which areas partnerships find most difficult, costly and burdensome, but points out that while the focus will be on simplification this does not automatically mean it will propose changes.

HMRC is currently undertaking a consultation on the disguising of employment relationships through the use of LLPs and arrangements for allocating profits and losses among partnership members. This consultation was announced in Budget 2013, when the government said it would be looking at these issues as part of a move to address manipulation of partnership rules to achieve a tax advantage. The consultation closes on 9 August 2013.

The OTS is also in the process of reviewing possible options for simplifying the rules on the taxation of employee benefits and expenses and is expected to publish an initial report on this topic later this summer.