LLP Tax Unchanged as Economic Crime Levy Rises
Changes to the Economic Crime Levy will increase compliance costs for larger firms from 2026, even as wider partnership tax reform was left of the table this year
• The 2025 Budget introduced no changes to LLP tax treatment, despite prior discussion about possible reform to partnership taxation. • The Economic Crime Levy (ECL) will increase for higher-revenue firms from 1 April 2026. • The revenue bands and fixed charges have been revised meaning more large firms fall into the higher levy tiers. • Commentary indicates that some of the largest firms could see substantially higher ECL charges than in previous years, reflecting the revised structure. • The ECL applies to entities supervised under the Money Laundering Regulations with UK revenue above the statutory threshold. • The updated levy structure is set out in the HMRC policy paper and implemented through the Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2025, which came into force on 25 November 2025.
• While LLP taxation remained unchanged, it is an area the government reviews periodically, so the position may be revisited in future budgets.
- The Law Society, Autumn Budget 2025 – five key announcements for solicitors and firms https://www.lawsociety.org.uk/topics/business-management/autumn-budget-2025-solicitors-firms accessed 29 November
- HM Revenue & Customs, Economic Crime Levy: changes to bands and charges https://www.gov.uk/government/publications/economic-crime-levy-changes-to-bands-and-charges accessed 29 November
- Travers Smith, Autumn Budget 2025 https://www.traverssmith.com/knowledge/knowledge-container/autumn-budget-2025-business-taxes/ accessed 1 December
- Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2025