City firms' plans to convert into limited liability partner-ships (LLPs) are back on track after the German Bundestag passed a crucial amendment to a company law bill making its way through the federal parliament.

The Bundestag agreed to the change last Thursday (9 November) following lobbying from German partner-ships which would have been adversely affected by the new law if the amendment had not gone through.

The new tax regime is due to come into force before the end of the year, leaving the way open for UK law firms to convert into LLPs without facing a significant tax hike.