Full steam ahead for LLPs
Gordon Brown reiterated measures from his pre-Budget report to ensure that professional partnerships planning to become limited liability partnerships are taxed as partnerships rather than as limited companies.
Partners whose organisation intends to become an LLP will still be taxed as a partner rather than as a director in a limited company.
The move is likely to be well received by those Big Five firms seeking to become LLPs.
The structure will be available from 6 April this year when the chancellor’s tax proposals for LLPs goes live.
They will be treated as businesses conducted by partners in partnership rather than a separate corporate body.