Chancellor Rachel Reeves thinking of taxing LLPs

Chancellor Rachel Reeves’s proposed tax raid on LLPs may force partners to work longer or reconsider their retirement plans, with significant financial implications for many professionals.

It was reported last week that Reeves is looking to target limited liability partnerships (LLPs) for a tax raid as she tries to fill a fiscal black hole.

The proposed 15 per cent rate of national insurance contributions on LLPs, which currently don’t pay corporate tax on their profits, could add a £46,000 tax burden per partner.

Speaking to City AM , Eliana Sydes, head of financial life strategy at Y TREE, explained that if the Treasury goes ahead with this raid, after the usual tax deductions, partners will actually face an 8 per cent tax incr

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