This is a useful article on the legislative changes to partnership tax.  One area that could provide firms with a headache is the section headed ‘Allocation of profits or losses', which states that taxable profits will now be allocated in the same proportion as accounting profits.  Many firms do not currently follow this policy, as private expenses are often allocated to specific partners rather than being split between the partner pool.  In addition, partners who are on a fixed profit share arrangement will not normally share in the tax adjusted profits of the firm, as this is often allocated to those partners with a variable profit share. Therefore, firms who operate these arrangements (and there are many) will have to consider the implications of this new rule.