articles: Simon Baylis

The LLP salaried members rules – Are you compliant?

The salaried members rules treat members of LLPs (but not partnerships other than LLPs) as employees for tax purposes if in substance their relationship with the LLP is akin to that of an employee. Not only does this affect the amount of tax payable, but it is also necessary to operate PAYE which may be a significant administrative burden.

Breaking news for non UK domiciliaries

The changes to the taxation of non UK domiciliaries which were to apply from 6 April 2017, have been dropped from the Finance Bill due to a shortage of Parliamentary time in advance of the General Election. When the clauses were dropped, it was announced that they will be brought forward in a Finance Bill as soon as is practicable after the election. It is not clear whether this will be through a further Finance Bill after the election (and potentially backdated in effect to 6 April 2017) or postponed to 6 April 2018.

This could have serious implications for anyone who undertook restructuring prior to the introduction of the new rules, particularly if they are not reintroduced in their current form.

Changes to the taxation of non-domiciled individuals

The UK Government announced its intention to introduce changes in the tax treatment of non-UK domiciliaries in the Summer Budget of 2015. A process of consultation on those changes has been ongoing. There are still some areas where more information is required, and the details are not finalised, but we have a better sense of what the post 6 April 2017 regime will look like.

Changes to the taxation of non UK domiciliaries

Last year the Government unveiled a suite of changes targeted at the taxation of non-domiciled individuals. A consultation document was published last year, alongside very limited draft legislation and last week the Government published a further consultation document, taking account of responses to the original consultation.