Tax raid on solicitor partnerships predicted to backfire

Lawyers warn that targeting LLPs could lead to companies restructuring or leaving the UK, reducing tax revenue for the Treasury.

The piece highlights that Colin Passmore, chair of the City of London Law Society, is concerned about the lack of detail and consultation. He warns that the tax change will “jeopardise” the revenue generated by the legal sector — which in 2023 was £47.1 billion — damaging growth and jobs and “the UK’s global legal brand,” making it less competitive in the international market.