Legal Business

CMS junior partners to pay up to £50k in response to HMRC shake-up

CMS Cameron McKenna has called on its fixed-share partners (FSPs) to make a substantial contribution of capital in light of HM Revenue & Customs’ (HMRC) recent overhaul of the way partnerships are taxed.

Members of the junior partnership that fall into band one of the firm’s four-tiered remuneration structure have been asked to contribute around £35,000 to £50,000 each. With 90 partners in this bracket, this means a total capital investment of up to £4.5m.

A partner at the firm told Legal Business: ‘The firm doesn’t necessarily need the money – it’s not a call for borrowings or to meet debt requirements. It’s a call to even out the capital positions across the various levels of the partnership. People were not necessarily happy taking on more borrowings but it hasn’t caused any ructions across the junior partnership.’