Firms support Osborne's tax clampdown on partnerships

Asset managers and wealth management firms have expressed support for the government's plans to scrutinise partnerships and LLPs in a clampdown on tax avoidance.

Presenting yesterday's Autumn Statement, Chancellor George Osborne said the government plans to look at firms' use of the limited liability partnership structure, and whether it is disguising employment relationships. It will also consider whether firms are allocating business profits to corporate partners in order to pay less tax, as corporate partners are taxed at lower rates than individuals. The Treasury forecast these measures could raise £3.3bn by 2019, an increase of £1.9bn since its initial estimate. Dominic Johnson, founding partner of Somerset Capital Management, an LLP w...