Tuesday, 17 January 2017

Review in to the Use of Limited Partnerships Launched Amidst Reports of Criminality

A review of the use of the limited partnership business model has been launched by the Department for Business, Energy & Industrial Strategy, following accusations of criminality in Scotland.

The UK government is gathering evidence on the use of limited partnerships across the country, with a particular focus on those registered in Scotland. Unlike those set up in England, Wales and Northern Ireland, Scottish Limited Partnerships have their own ‘legal personality’, meaning they can hold assets, borrow money from banks and enter into contracts.

The call for evidence will help inform what further action, if any, is required to prevent limited partnerships being used as a front for unlawful activities such as money laundering and tax evasion, while also ensuring that the limited partnership business model continues to provide an efficient and flexible vehicle for legitimate business use.

Businesses and other interested parties are being called upon to take part in this call for evidence to help the UK government better understand what has led to huge increase in the number of limited partnerships being set up across the UK and what they are being used for.

UK government Business Minister Margot James said “I am concerned about recent reports relating to the use of limited partnerships, suggesting that some are being used for criminal activity. This undermines the many legitimate uses this form of incorporation can give.”

Secretary of State for Scotland David Mundell said “It is right the UK government launches this call for evidence into the use of Scottish limited partnerships for possible criminal activity. Work by campaign groups and a series of media reports have highlighted growing concerns which require to be taken very seriously. I would urge businesses and organisations in Scotland to share their views. It is important we are able to gather as much information as we can.”

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