Reeves targets lawyers, doctors and accountants – Daily Business

Chancellor Rachel Reeves is expected to target lawyers, family doctors and accountants as part of a tax raid on higher earners.

Sources say she will impose a new charge on those who use limited liability partnerships as she tries to balance the government’s books.

Ms Reeves is looking to raise £2 billion from more than 190,000 workers who use these partnerships, particularly in the legal sector.

Such partnerships offer a significant tax benefit over other employment. They are not subject to employer’s national insurance as partners are treated as self-employed, so they are outwith the NICs rise that Ms Reeves imposed last year.

The Chancellor considers this to be an unfair benefit for higher earnes. She has ruled out a “wealth tax” but has said that “those with the broadest shoulders” should expect to be targeted in any tax hikes.

According to The Times, more than 13,000 partners earn an average of £1.25 million each a year. Solicitors who draw profits from partnerships make an average of £316,000 a year. Family doctors make £118,000 and accountants an average of £246,000. A solicitor in a partnership earning the average £316,000 would face a charge of £23,000 under proposals drawn up by economists, equivalent to an average tax rate of 7.3%

Ms Reeves is also expected to announce changes to capital gains tax on the sale of the most expensive homes as she looks at the assets of the wealthy as a potential revenue source.