Reeves weighs LLP partner levy and other tax measures before Budget

Chancellor Rachel Reeves is preparing a package of tax measures and other revenue-raising options ahead of the Budget on 26 November as she seeks to close a large shortfall in the public finances, officials and analysts say. Measures under active consideration include a targeted levy on professionals who operate through limited liability partnerships, possible changes to income tax rates, and proposals affecting property taxation and savings allowances.

At the centre of the discussions is a proposal to apply a national-insurance-style charge to partners in limited liability partnerships. Analysts estimate the change could affect roughly 190,000 professionals working in law firms, accountancy practices, some fund managers and medical partnerships, and yield about £1.9 billion to £2 billion a year. Under current rules partners in many LLPs are treated as self-employed, so their firms do not pay employers national insurance contributions. Thinktank analysis suggests average partnership profits for solicitors are around £316,000, for accountants about £246,000 and for some family doctors about £118,000; a partner on the solicitor average could face an additional charge of roughly...