New regulation would see non-compliant agricultural partnerships follow a strike off procedure Regulations would also see agricultural partnerships forced to file an annual return to Companies House.
NFU Scotland is said to be particularly concerned that there is a lack of understanding in the industry over the new regulations.
Gemma Cooper, NFU Scotland legal and technical policy manager, said: “Limited Partnerships have operated with agriculture for some time. They are attractive because of the tax advantages that they provide, as partners are taxed only on the profits arising from the limited partnership.
“More specifically, to the proposal for ‘non-operating strike-off’, whereby a limited partnership’s failure to deliver a confirmation statement would lead to the Registrars’ belief that the partnership is not in operation.
“The consequences of this could be the limited partnership losing limited liability, something we believe could lead to the potential for legal claims and European Convention on Human Rights issues.”