M&A Weekly Update: new LLP tax rules and deferred prosecution agreements for corporates

On 21 February, HMRC published updated guidance on the new ‘salaried member’ rules, the rules that will treat members of an LLP as employees for tax purposes in certain circumstances. The guidance confirmed that the rules will come into force on 6 April 2014. To fall outside the provisions, an individual must ensure that he or she does not meet one or more of the three criteria (known as conditions) set out in the legislation.

Impact — if treated as a salaried member, an employer’s national insurance contributions will be due in respect of remuneration paid to the member (at 13.8 per cent), the LLP will be required to operate the PAYE regime and the employment-related securities and disguised remuneration rules will also apply to that member.

Deferred prosecution agreements (DPAs) may soon be a feature of UK criminal proceedings involving corporates as, from 24 February, corporates are now able to enter into DPAs with prosecutors in relation to certain criminal offences…

Click on the link below to read the rest of the Macfarlanes briefing. 

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