United Kingdom


  • Service: Tax, Personal Tax, Budget 2014
  • Type: Business and industry issue, Regulatory update
  • Date: 19/03/2014

Key Measure: Changes to the taxation of partnerships 

Key Measure: Personal Tax - changes to the taxation of partnerships
The draft clauses for Finance Bill 2014 published in December 2013 included measures affecting certain members of LLPs and profit sharing arrangements in ‘mixed’ partnerships.

The Budget has confirmed that, despite some calls for the introduction of the new rules to be delayed, both will take effect in April this year. Some targeted anti avoidance relating to these measures is already in place. Partnerships and members of LLPs affected or potentially affected by the changes have limited time to ensure that they understand the impact of these new rules: this should be a key focus point for them in coming weeks.


Responding to the Office for Tax Simplification’s review of partnership taxation, published earlier this year, the Government has announced that it will implement some recommendations and consider others, and that HMRC will publish a draft partnership manual for consultation in April.


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Dermot Callinan

Dermot Callinan

UK Head of Private Client

KPMG in the UK


0113 231 3358

Email Dermot