LLPs warn of rush to incorporate as Chancellor pushes on with tax crackdown

Limited Liability Partnerships (LLPs) may rush to incorporate and deprive the Treasury of revenues after the government pushed ahead with the crackdown on current LLP taxation structures.

Despite criticisms from the industry and calls for a delay prior to the Budget, the Chancellor yesterday confirmed new tax rules impacting LLPs will come in from April. The ruling went against the recommendation from the House of Lords Economic Affairs Committee, which said a delay until April 2015 would give firms more time to implement the changes. Instead, the legislation will come in from 6 April, the Budget revealed last week. "The government will introduce legislation that will take effect from April 2014 to counter the disguising of employment relationships in limited liabil...