In light of tax changes proposed for April 2014, partnerships may need to reconsider their members’ classification and/or duties to maintain the most tax efficient positions.

The UK Government’s recently published draft Finance Bill 2014 provisions are expected to impact significantly the taxation of partnerships — in particular ‘salaried’ members of limited liability partnerships (LLPs) formed under UK law as well as partnerships with ‘mixed’ members. These changes are expected to have effect from 6 April 2014.

The legislation, if introduced, would affect many different businesses, including those in the financial services and professional services industries.

This draft legislation is designed to address two main issues...