Proposals to clarify the tax treatment of partnerships
HMRC has published a new consultation which considers five areas of partnership taxation where the rules are considered uncertain. This consultation is relevant to general and limited partnerships as well as LLPs, although HMRC expects there will be “no effect for the vast majority of partnerships.” As partnerships are being used more frequently as flexible business vehicles, HMRC is seeking to ensure the rules are clear, certain and fit for modern day practice.
The five areas which the government is consulting on are:
This consultation closes on 1 November 2016. If you would like to submit any comments or responses to the nine questions posed for inclusion with the Tax Faculty response, please contact Sarah Ghaffari firstname.lastname@example.org by 14 October 2016.