Firms challenge new tax legislation that will threaten existence of wealth managers structured as LLPs.
Investment managers and wealth managers are challenging new government tax rules on LLPs as they feel they are being punished because a small number of firms are using the structure to avoid tax. Many boutiques and larger investment management firms are formed as limited liability partnerships (LLPs) and there are now more than 800 within investment management, up from 325 before the financial crisis. An LLP is a corporate body that is regarded as transparent for tax purposes and therefore pays no corporation tax or capital gains tax. Instead, each partner is assessed on their share...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes