Company set up by solicitor can be victim of age discrimination, says EAT in “hugely significant” ruling
A company set up by a senior solicitor to be a member of his firm’s limited liability partnership can be the victim of age discrimination, the president of the Employment Appeal Tribunal has ruled. It is believed to be the first discrimination case brought by a company.
The common law doctrine of repudiatory breach does not apply to limited liability partnerships (LLPs) with more than two members, the High Court has held, in what is believed to be the first ruling of its kind.
The Chancellor George Osborne yesterday confirmed that there would be no delay in introducing the changes to the way LLPs are taxed, which has left many firms seeking funding for capital contributions.
An influential House of Lords committee has added its voice to calls for the government to delay its partnership tax reforms until 2015, so as to allow LLPs time to adjust to the changes.
Controversial changes to the taxation of LLPs will go ahead on 6 April, HM Revenue & Customs announced late last week, but has made some small concessions in response to the concerns of lawyers and others – including giving more time to contribute capital.
The effects of the planned changes to the taxation of LLPs will be “far harsher than originally expected” and could put a significant strain on finances come April, solicitors have been warned.
Reformed HMRC rules dealing with the taxation of partnerships will obstruct “innocent” firms trying to invest in their businesses and force them to modify their profit-sharing arrangements, according to a leading firm of accountants.