When capital called

Allen & Overy did it February, Freshfields Bruckhaus Deringer followed in March and Linklaters made its move before the Easter break. Now Clifford Chance, Ashurst, Herbert Smith Freehills and Norton Rose Fulbright have joined the pack in unveiling partnership promotions rounds for 2014.

So now we know. At the tail end of last year in The Lawyer Management I said HMRC’s looming changes to the partnership tax regime had the power to create “lengthy lines of salaried partners going cap in hand to the banks”. Over the past few months partners at a string of firms including Eversheds, Weightmans and Hogan Lovells did indeed put in a call to the bank manager.

Matt Byrne
Matt Byrne

Now new research we conducted last month confirms that the majority of firms affected by the new rules have looked to fail Condition C, which relates to the level of capital a “true partner”, in HMRC’s words, has in their business.

In next Monday’s HMRC-focused feature we will unveil the full results of that research, but here are a couple of stats to whet your appetite and further underline the fact that there has been a stampede to inject capital. Of our sample firms, 95 per cent confirmed they were considering implementing changes as a result of HMRC’s new rules while 64 per cent said they were looking to fail Condition C. For the results in full, see The Lawyer next Monday.

Elsewhere in this issue, and following on from the announcement earlier this month of Clifford Chance’s trainee stress programme, the director of corporate at Bupa Patrick Watt clarifies the importance of caring for employees’ mental health in the legal market, and offers some practical steps to make sure stress doesn’t get the better of you.

On top of that we have briefings from HP Autonomy on e-discovery and Intelligent Office on legal process re-engineering.

Featured Briefings
Litigation – Minter Ellison: How ‘advice’ and ‘independence’ influence claims for privilege by in-house counsel
Company – Allen & Overy: Investigations — a fact of corporate life
Pensions – Nabarro: Budget 2014: a new pensions landscape
Tax – JPM Jankovic Popovic Mitic: Taxation of cloud services in Serbia
Finance – Allen & Overy: Key issues for asset managers in 2014