TaxCorporate TaxHMRC consults on partnership tax changes

HMRC consults on partnership tax changes

HMRC is consulting on proposals to clarify the tax treatments of general and limited partnerships

HMRC consults on partnership tax changes

HMRC is consulting on proposals to clarify the tax treatments of general and limited partnerships.

The consultation covers areas where the government has identified that the tax rules may be seen as unclear or produce an inappropriate outcome.

These areas comprise:

  • clarification of who is the partner chargeable to tax
  • business structures that include partnerships as partners
  • investment income – tax administration
  • trading and property income – tax administration
  • allocation and calculation of partnership profit

The object of the proposals is to remove uncertainty by making the calculation and reporting of partnership profits clearer for taxpayers, HMRC said.

“This will prevent unnecessary costs for compliant taxpayers and reduce the scope for non-compliant customers to avoid or delay paying tax. It will have no effect on the vast majority of partnerships. It seeks to provide clarity in particular circumstances where the current rules are seen as creating uncertainty,” it said.

Related Articles

‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

7d Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Tax crackdown brings in £468m for HMRC

Corporate Tax Tax crackdown brings in £468m for HMRC

8m Accountancy Age editorial
Treasury Select Committee report released on Making Tax Digital

Accounting Standards Treasury Select Committee report released on Making Tax Digital

8m Stephanie Wix, Writer
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

6m Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

7m Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

8m Accountancy Age editorial