Law firms spared partnership tax grab in UK budget

The absence of a rumored increase in national insurance contributions for limited liability partnerships in the chancellor's U.K. budget statement on Wednesday suggested that the proposal might have been quietly shelved after heavy lobbying from thelegal sector.

Colin Passmore, chair of the City of London Law Society, said he was pleased at the confirmation by the government that it will not go ahead with proposed reforms to National Insurance that would affect LLPs.

"This is a welcome recognition of the serious concerns raised across the profession," Passmore said in astatement to Law360. "We stand ready to support the Treasury in any future work to ensure reforms arefair, proportionate, and protect the U.K.'s standing as a world-leading center for legal services."