UK FISCAL: Reeves looking to tax limited liability partners: Implications
Oct-22 09:47
- Stories out just after the close yesterday suggested that Chancellor Rachel Reeves was looking to impose a charge on limited liability partners in the Budget as she sees these as ways to easily avoid tax.
- Limited liability partnerships are used in particular by legal firms, GPs and accountancies. Because they are taxed as partnerships (similar to the self employed) they do not need to pay employers National Insurance Contributions (NICs) on the partners' earnings. As a reminder employers NICs were increased to 15% in April.
- The proposed plans could raise up to GBP2bln and would likely be popular with Labour's core voter base (taxing the wealthy).
- However, there could be adverse side effects. If this leads to GPs closing down or more senior GPs cutting back hours or retiring then access to front-line healthcare could be more restriced. This could lead to more pressure on A&E departments and one of UK's issue's is trying to reduce the proportion of those inactive in the labour market due to long-term sickness. This may be exacerbated if it makes it harder for people to get doctors appointments.
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EU-BOND AUCTION RESULTS: EU-bond results
Sep-22 09:39
| 3.125% Dec-28 EU-bond | 3.375% Dec-35 EU-bond | 2.625% Feb-48 Green EU-bond | |
| ISIN | EU000A3K4EN5 | EU000A4D8KD2 | EU000A3K4DM9 |
| Amount | E2.1bln | E1.659bln | E1.317bln |
| Previous | E2.3bln | E1.951bln | E3bln |
| Avg yield | 2.302% | 3.189% | 3.883% |
| Previous | 2.307% | 3.119% | 3.759% |
| Bid-to-cover | 1.33x | 1.43x | 1.26x |
| Previous | 1.45x | 1.66x | |
| Avg Price | 102.504 | 101.598 | 81.408 |
| Low Price | 102.490 | 101.570 | 81.370 |
| Pre-auction mid | 102.468 | 101.495 | 81.221 |
| Prev avg price | 102.744 | 101.523 | 82.173 |
| Prev low price | 102.730 | 101.490 | |
| Prev mid-price | 102.699 | 101.422 | |
| Previous date | 19-May-25 | 25-Aug-25 | 14-Nov-23 |
EQUITY OPTIONS: Estoxx Put Seller
Sep-22 09:37
SX5E (19th Dec) 5200p, sold at 80.5. 80.3, 80.2 in 18k.
GERMAN T-BILL AUCTION RESULTS: 3/9-month Bubills
Sep-22 09:34
| Type | 3-month Bubill | 9-month Bubill |
| Maturity | Dec 10, 2025 | Jun 17, 2026 |
| Allotted | E2.3bln | E2.03bln |
| Previous | E1.595bln | E2.187bln |
| Total sold | E2.5bln | E2.5bln |
| Target | E2bln | E3bln |
| Avg yield | 1.791% | 1.954% |
| Previous | 1.839% | 1.913% |
| Bid-to-cover | 2.57x | 1.23x |
| Previous | 2.16x | 2.22x |
| Bid-to-offer | 2.36x | 1x |
| Previous | 1.72x | 1.62x |
| Previous date | Aug 25, 2025 | Aug 25, 2025 |
