In the latest onslaught against anti-avoidance HMRC have been reviewing the use of partnerships. Two specific areas have been targeted:
- The use of corporate partners
- The use of partnerships to disguise employment
We now have a first draft of the rules, which will apply from 6 April 2014.
If you control a limited company which is a partner alongside you in any type of partnership, the anti-avoidance rules are likely to have an effect on how any profit share allocated to your limited company is taxed.
So seek tax advice now before the new rules come into force.