Redwood: Firms 'need stronger case' to challenge LLP tax rules

MP John Redwood has told investment managers they are unlikely to successfully challenge the upcoming tax changes to LLPs unless they build a stronger argument.

Speaking at the Institute of Chartered Accountants in England and Wales last week in a debate held by New City Initiative, Redwood said the industry's arguments are "too vague and too general" and are unlikely to persuade MPs to change the rules. In last year's Autumn Statement, Chancellor George Osborne said the government planned to look at the use of LLPs and the possibility such structures are disguising employment relationships. It will also consider whether firms are allocating business profits to corporate partners in order to pay less tax as corporate partners are taxed at low...