Government to publish LLP Bill

Government to publish LLP Bill

The government will publish a bill within the next fortnight setting out the framework for limited liability partnerships to head off moves by some Big Five firms to register offshore, reports Phillip Inman.

Senior figures in the profession described the proposals as an ‘acceptable compromise’ that would allow firms to protect their assets in return for greater disclosure of financial information.

An LLP bill is expected to be included in the Queen’s speech and fast-tracked with three other non-political bills to be law by spring.

The Department of Trade and Industry confirmed it would publish the bill in the next two weeks after ministers had finalised details. It follows 18 months’ consultation and hundreds of submissions to industry minister Ian McCartney.

Accountancy firms are set to jump at the chance of switching to LLPs, following their US counterparts which gained LLP status in 1994. PricewaterhouseCoopers and Ernst & Young, which threatened to register offshore to Jersey, are expected to be first in line.

The bill would mean only a firm’s assets and those of negligent partners would be at risk in a damages claim, cutting risk to non-negligent partners.

Colin Ives, managing partner of Smith & Williamson, was keen to adopt LLP status.

‘It is a sensible vehicle to trade through, because you are in a better position to protect your assets,’ he said.

But Chantrey Vellacott partner Maurice Fitzpatrick expected his firm to judge the perception of risk and level of personal injury insurance cover against the requirement to publish company-style accounts.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource