Update on HMRC’s Consultation on Partnerships and LLPs
Most readers will be aware of the Revenue’s current consultation into the taxation of partnerships and LLPs.
The Revenue recently held an open meeting on the ongoing consultation, at which it explained the issues that it is looking to address and its proposals for doing so. A copy of the slides from the meeting can be viewed by clicking here.
Whilst nothing new was announced in relation to either the issues or the proposals, the Revenue have now provided an indicative timeline for the issuing of the new legislation. The plan is to introduce the changes in the Finance Bill 2014 and in a new National Insurance Contributions Bill 2013:
- The formal consultation is open until 9 August 2013;
- The draft National Insurance Contributions Bill will be published in September 2013. As announced in the Queen’s Speech in May, this will remove the presumption that LLP members are automatically treated as self-employed;
- Draft technical guidance, draft legislation and a summary of the responses to the consultation will be released as part of the Chancellor’s Autumn Statement, which is usually around the end of November / early December;
- Final legislation will be published as part of the Budget, probably in March 2014;
- The effective date for the new legislation will be 6 April 2014;
- The Revenue will issue final technical guidance, once the 2014 Finance Act has received Royal Assent (probably in July 2014).
We will keep you updated as soon as we know more about the proposed changes.