Allen & Overy is set to become the first magic circle firm to convert to a UK limited liability partnership (LLP).
The Lawyer understands that subject to a partnership vote, conversion could take place by the end of this financial year, although it is possible that not all of the firm will initially transfer to LLP status.
Only a minority of Lawyer 100 firms have yet converted to LLP status, although a number have signalled an interest. Clifford Chance, the biggest LLP in the world, is registered under US law.
Traditionally German tax treatment of UK LLPs has been considered disadvantageous for UK law firms.