There is speculation in the markets today that the UK Chancellor would remove the exemption from the NIC contribution to partnerships and LLPs. This would predominantly affect law and accountancy firms. As a result I have decided to exit my positions in FRP and scale down substantially my Begbies position. On balance the changes should be short term more negative to BEG who have a larger LLP structure exposure, while FRP should be a bit more modest given the blended LLP and PLC structure in place. Long term I think these changes would be beneficial for both as more partnerships come to the market. Short term however I suspect this would be a reasonable headwind.