A review looking at the uses of “limited partnerships” in the UK has been launched following recent allegations that some businesses registered in Scotland are being used for criminal purposes.
Evidence is being gathered across the UK but with a particular focus on 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.
Between 2011 to 2012 and 2015 to 2016, the number of limited partnerships registered in Scotland increased by 237% while the rise in registrations in England, Wales and Northern Ireland for the same period stood at just 42%.
A call for evidence has been launched to 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. 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 such an increase in the number of limited partnerships being set up and what they are being used for.