UK Partnership Tax Could Give Reeves £1.9 Billion, Study Says

The UK could raise £1.9 billion ($2.6 billion) a year from lawyers, accountants and financiers by removing an outdated relief for business partnerships, according to a proposal that could help Chancellor of the Exchequer Rachel Reeves as she seeks to fill a black hole in the public finances.

Partnerships are currently exempt from employer national insurance contributions, paid by firms on staff salaries, due to an “accident of history,” the Centre for the Analysis of Taxation said in a report. It proposed equalizing the tax treatment of partners with regular employees, saying the “stark differences in how earnings are taxed” ...