Does abuse of tax rules for partnership require a major clampdown by the taxman? That’s the £300m question and the reason that the majority of large law firm partnerships in the UK are now facing an overhaul of the tax treatment of partners and retained earnings.
Tax specialists and legal finance directors are currently sizing up proposals from HM Revenue & Customs (HMRC) to change the treatment of members and retained earnings in limited liability partnerships (LLPs).
