City of London Law Society voices tax change concerns

It notes that the City of London Law Society (CLLS) has voiced significant concerns regarding reports that the Treasury is contemplating changes to National Insurance Contributions (NICs) for partners in limited liability partnerships (LLPs).

In the letter addressed to the Chancellor of the Exchequer, the CLLS articulated that while the legal profession acknowledges the necessity of a fair and effective tax system, the proposed changes could pose unintended consequences for one of the UK's most competitive and economically vital sectors.

Colin Passmore, Chair of the City of London Law Society, expressed that the organisation “fully understands and supports the Government’s objective of ensuring that everyone pays their fair share of tax."

However, he cautioned that “these particular proposals appear to have been developed without sufficient consultation or clarity as to their scope and risk undermining one of the UK’s most successful exports: English law." He further emphasised their readiness to work collaboratively with HM Treasury to address any perceived imbalances, urging a period of reflection and engagement before the implementation of such measures.