The Limited Liability Partnerships (Jersey) Law is expected to come into force in the spring of 1997. The UK government has announced its intention to introduce similar legislation in Britain, thus demonstrating that it recognizes the liability issues now facing professional services organizations, and lending its support to the proponents of such legislation. The deputy vice-president of the Law Society, Michael Matthews, has stated that there is no policy reason why solicitors should not take advantage of Jersey's proposed limited liability partnerships.
The UK Inland Revenue has issued a warning to the effect that firms which take advantage of registration under the Jersey legislation may find that they are taxed as companies in the future. However, it is thought that the tax position may depend on whether the structure is right or wrong and that, in any event, the protection offered by limited liability partnership status may well override any additional tax concerns.
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