Mark Waddilove, partner at RSM, considers the tax status of partners in limited liability partnerships after the Bluecrest decision
After years of uncertainty, numerous enquiries, and several tribunals, HMRC has finally achieved a significant legal victory in clarifying the taxation status of partners in limited liability partnerships (LLPs).
On 17 January, the Court of Appeal released its ruling in the case of HMRC v BlueCrest Capital Management (UK) LLP, providing much-needed clarity on HMRC’s application of the salaried member rules, especially the significant influence test (Condition B).
This will be of particular interest to traditional professional services firms such as lawyers, accountants and architects, as well as those operating in the financial services sector in the hedge fund and private equity market.
