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Finance Bill 2014: news roundup

The Treasury has published draft legislation for consultation and future inclusion in Finance Bill 2014.
It relates to measures proposed in past Budgets and provides more detail of announcements made in the autumn statement earlier this month.

Avoidance: partnerships
As announced in the 2013 Budget, and following consultation over the summer, legislation will be introduced to counter avoidance by partnerships. In particular:

the disguising of employment relationships in relation to salaried members of limited liability partnerships;

tax-motivated allocations of business profits or losses in partnerships where the partners include individuals and companies (mixed membership partnerships); and

tax-motivated disposals of assets through partnerships.
On the treatment of salaried partners, the new rules will apply when an individual (M) is a member of a limited liability partnership (LLP) and three tests are met.
Condition A is that there are arrangements in place under which M is to perform services for the partnership in his capacity as a member, and it would be reasonable to expect that the amounts payable by the LLP in respect of M’s performance of those services will be wholly, or substantially wholly, fixed or, if variable, variable without reference to, or in practice unaffected by, the overall profits or losses of the partnership.
Condition B is that the mutual rights and duties of the members and the LLP and its members do not give M significant influence over the affairs of the partnership.
Condition C is that M’s contribution to the LLP is less than 25% of …

Read more here: Taxation

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