A&O set for LLP conversion by end of financial year

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.

UK firms set to change include Wragge & Co, Eversheds and DLA, smaller firms such as Withers and Kemp Little have already converted.

Traditionally German tax treatment of UK LLPs has been considered disadvantageous for UK law firms.