How will BlueCrest decision affect salaried member tax?

20 Nov 2023

The tribunal ruling in BlueCrest Capital Management’s tax arrangements means LLPs should revisit their agreements and profit share computations to assess how they interact with the salaried member conditions, explain Charlotte Sallabank, Christy Wilson and Hayley Rabet from Katten Muchin Rosenman

The Upper Tribunal affirmed the First Tier Tribunal’s (FTT) ruling in HMRC v BlueCrest Capital Management (UK) LLP regarding the application of the salaried members rules.

Notably, it dismissed HMRC’s request for a limited interpretation of ‘significant influence’ recognising that influence can be financial, not just managerial, and over some, not necessarily all, of the affairs of the partnership.

Background