Budget 2013: professional practices and other LLPs

The 2013 Budget statement includes two changes which may be of relevance to professional practices and other businesses using a partnership or Limited Liability Partnership model.

The first change, effective from 20 March 2013, is in relation to loans made to a partnership by a close company. Normally, when a close company makes a loan or advance to a shareholder, it is obliged to deposit with HMRC an amount equal to 25% of the amount loaned, to be repaid by HMRC as and when the shareholder repays the loan. Hitherto, HMRC’s own guidance has confirmed that a loan made by a company to a partnership or LLP of which it is itself a member is exempt from the charge. This has facilitated arrangements whereby profits accumulated in a company can be made available tax-efficiently to fund a business which the company carries in partnership with some or all of its shareholders. From 20 March, as part of wider review of the rules in this area, such arrangements will not work. Click here for a more detailed briefing note on this aspect of the Budget changes.

The second change, effective from 6 April 2014 subject to consultation, potentially affects partnership and LLPs which either have salaried members or have some individual members and some company members. You will find here a link to the HMRC consultation document published on 20 May and our initial comments and advice on it.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


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