James Cohen, Head of the Private Client team, was recently featured in Spear’s commenting on the impact the upcoming budget will have on Limited Liability Partnerships- and what that might mean for ultra-high-net-worth individuals.
James emphasised that “it is important to stress that LLP taxation is not a loophole” and explained that “The framework was deliberately designed to recognise the entrepreneurial nature of partnership income. Members of LLPs bear financial and professional risk in a way that employees do not, so the tax treatment appropriately reflects that distinction.” He further noted that “any move toward corporate-style taxation or restrictions on profit allocation would fundamentally change the partnership model rather than simply close avoidance.”
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