This proposal not only impacts on the law firm's themselves as there is a suggestion they may relocate outside of the UK. It will also impact on all those individuals employed by them and relying on them in the UK for their income!
Tax levy on wealthiest law firms nonsensical, says Law Society. An additional tax on successful law firms may force them to relocate outside England and Wales, says the Law Society. Lawyers have dismissed as nonsensical a proposal by the Ministry of Justice to impose a tax on the UK’s wealthiest law firms. The tax is intended to replace a charge on guilty defendants that has been widely condemned for undermining the justice system. “This is simply a tax on success,” said Jonathan Smithers, president of the Law Society. “Singling out the legal profession to pay a levy on top of the tax they pay as businesses could damage the legal sector’s competitiveness and thereby its international standing as the jurisdiction of choice.”