Chancellor Backs Away From Targeting LLPs With Tax

The professional services sector will breathe a sigh of relief as one of her reported rollbacks includes crossing out plans to target limited liability partnerships (LLPs) for tax.

The LLP model, used by professional services such as law firms, accountancy, and some doctors (GPs), came into force 25 years ago, which does not pay corporate tax on its profits.

However, news broke last month that Rachel Reeves was looking to change that, a move that warten a slurry of anger from the broader professional services industry, including the legal sector.

However, according to the Financial Times, Reeves is now reconsidering a levy on LLPs, in addition to backing away from income tax hikes and the controversial ‘exit tax’ policy.

The “specul

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