Partnership clampdown warning The New City Initiative (NCI), a think tank that represents investment partnerships, will warn this week that firms could either flee abroad or switch to company structures if George Osbornes crackdown on partnerships goes ahead. The Chancellor announced in Decembers Autumn Statement that he would pursue companies that manipulate the partnership structure to disguise employment and avoid tax. The move is expected to raise £3.3bn over the next five years, of which £1.8bn could come from investment managers. The NCI found that half of its partnerships would consider switching to a corporate structure if the rules went ahead, potentially costing the Treasury millions in tax as their effective rate would fall from 47% to 33%. Changes to the tax treatment of partnerships could represent a significant loss to HMRC and lead to an exodus of profitable, well-run investment management firms from Britain.
Posted on: Sun, 02 Feb 2014 17:05:19 +0000
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