CLLS Response to Consultation on ICLA Scheme - March 2026

The Committee argues that whilst it is clear that the ILCA proposal is likely to have a less direct impact on CLLS members, it will impact our clients who will have to pay an interest tax. In addition, we are concerned at the potentiallywide ranging impact that these proposals could have on the legal profession as a whole and the harm itwill cause to clients. In these circumstances CLLS members will also have to bear a significant proportion of the increased regulatory costs that result from implementation of ILCA. 

The negative impact on the legal sector which we expect to be caused by ILCA is likely to reduce both the size of the sector and the government revenues derived from the sector. This reduction in net revenue is likely to exceed any additional net income the MoJ may gain from the scheme. As such, this appears to be an extraordinary self-defeating act on behalf of the MoJ and the Government more widely.