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Partnerships and tax avoidance – draft 2014 Finance Bill

December 12, 2013

As expected the recent Autumn Statement followed the trend set in previous announcements of attacking tax avoidance and the perceived manipulation of the law. The draft 2014 Finance Bill legislation published on Tuesday set out in detail the government’s approach and includes several provisions tackling tax avoidance through various methods relating to the use of partnerships.

The following areas are affected by the proposed legislation, please click the links below for further information:
• Salaried members of LLPs (remuneration without reference to the profits/losses of the LLP)
• Mixed membership partnerships (partnerships with both individual and non-individual members)
• Alternative investment fund managers: deferred remuneration
• Disposal of assets or income streams through partnerships

It is intended that the legislation in relation to these areas will take effect from 6 April 2014, or 1 April 2014 for persons within the charge to corporation tax. Although LLPs and partnerships with year ends straddling that date will have to consider the position for that straddling year. Partnerships and members should review their position in advance of this date to consider whether they will be caught by the new rules.

For more information relating to these new rules, please speak to your usual contact at Moore Stephens.

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