Partnership taxation: chargeable tax and profit allocations

The imminent overhaul of tax rules for all types of partnerships will have a wide-reaching impact, particularly on the bare trust/beneficiary approach. Mark Cawthron LLB CTA outines the key changes and sets out potential pitfalls for partners to consider

Partnership taxation is on the move. The latest set of changes extend to every type of partnership – general partnerships, limited partnerships and limited liability partnerships (LLPs). In practice, those particularly affected are limited partnerships, but some of the changes have a breadth which means, technically at least, they are relevant to even the smallest of trading or professional partnerships.

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