Autumn Statement 2013: Impact on partnerships

As expected, the Autumn Statement has confirmed that the government is restricting the advantages of trading in a partnership made up of individuals and companies. Full details will emerge as the draft legislation takes shape, and we will be reviewing the new rules in detail to establish how they affect our clients. 

For now, it seems that the anti-avoidance rules on profit allocation take effect from 5 December 2013, but will still allow some scope for a corporate partner to make a profit which is reasonable in view of its capital commitment to the partnership and any services that it provides to the partnership. 

To discuss this or any other concerns arising from the Autumn Statement please contact our tax partners, Clare Munro and Phil Moss or your usual Lubbock Fine contact.