Magic Circle law firms face £250m blow from Reeves tax raid
Partners at London’s “Magic Circle” law firms face paying at least £250m more in tax under Rachel Reeves’s plot to raid accountants and lawyers.
The article highlights that Colin Passmore, the chairman of the City of London Law Society, criticised Ms Reeves’s plans as “short-sighted” while warning that they threaten to “negatively affect the competitiveness and status of London as a global hub for law”. He said: "We hope that the Government will first engage in constructive consultation with the legal and professional service sectors before they consider introducing such a change to the tax regime".
He added, “We are talking about a sector that has for a long time been a critical motor of the UK economy, generating billions in economic value and a trade surplus through legal exports. “We must ensure it remains a global leader in the face of aggressive competition from other jurisdictions, not disincentivise growth through a piecemeal approach to tax reform.”