Tax changes and court judgements take shine off LLPs

Hedge funds alert to new risks of limited liability partnerships

Jane Amphlett

Fund managers were some of the most enthusiastic adopters of the limited liability partnership (LLP) model, which was introduced in the UK in 2001. LLPs combine the flexibility of a partnership with the advantage of limited liability, and have benefited from a beneficial tax regime for members. But have recent developments reduced their appeal?

What have been the benefits of the LLP structure?
Prior to April 2014 there was a presumption, for tax purposes, that LLP members were self-employed. Self