LLP Tax Changes to Net £300 Million

Businesses that have constituted themselves as limited liability partnerships (LLPs) will greet without enthusiasm the announcement by Treasury Secretary Danny Alexander that the Government ‘will be closing the loophole that allows private equity shareholders to siphon money out of their firms while dodging the intended Income Tax’ and ‘closing the loophole that allows partners in partnerships to structure their staff arrangements so that they avoid the correct amount of Income Tax’.



The Government claims that closing the loopholes will add more than £300 million annually to the tax take.