HMRC issues LLP guidance on salaried members' taxation

HMRC has published revised draft Finance Bill 2014 legislation and a revised explanatory note about salaried members as well as a related Tax Information and Impact Note (TIIN)

The changes will make sure that a salaried member of a limited liability partnership (LLP) is treated as an employee of the LLP for income and corporation tax purposes. The new rules will apply at any time when an individual is a member of an LLP and three specified conditions are met. The legislation will also provide for a deduction for certain expenditure in respect of a salaried member’s employment that would not otherwise be deductible, subject to certain provisions that provide for disallowance on normal principles.

Meantime, changes to the National Insurance contributions legislation and related rules will be included in the National Insurance contributions Bill 2013 .

The revised draft Finance Bill 2014 legislation is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/287649/Salaried_members_draft_legislation.pdf

The revised explanatory note is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/287655/EN_Partnerships_Salaried_members.pdf

The TIIN is available at  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/287609/Salaried_members_revised.pdf

Diane Tan |Content manager - current awareness, CCH

Diane Tan is content manager, current awareness at CCH, Wolters Kluwer UK www.cch.co.uk...

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