Emily Clark and Ian Zeider (Travers Smith) revisit the Upper Tribunal’s salaried members judgment in BlueCrest, focusing on what it means for LLPs. Is there now more scope to claim ‘significant influence’, but perhaps less certainty of being on the right side of the line?
The salaried members rules (SMR) were introduced in 2014 and are intended to ensure that members of UK limited liability partnerships (LLPs) who are more like employees than partners in traditional partnerships are treated as employees for tax purposes. Whilst they are in essence anti-avoidance rules they have an impact on how almost all LLPs are run requiring the position of each individual member to be addressed.
Despite this until the decision of the First-tier Tribunal (FTT) last June in BlueCrest Capital Management (UK) LLP v HMRC [2022] UKFTT 204 (TC) there had been no detailed judicial consideration...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Emily Clark and Ian Zeider (Travers Smith) revisit the Upper Tribunal’s salaried members judgment in BlueCrest, focusing on what it means for LLPs. Is there now more scope to claim ‘significant influence’, but perhaps less certainty of being on the right side of the line?
The salaried members rules (SMR) were introduced in 2014 and are intended to ensure that members of UK limited liability partnerships (LLPs) who are more like employees than partners in traditional partnerships are treated as employees for tax purposes. Whilst they are in essence anti-avoidance rules they have an impact on how almost all LLPs are run requiring the position of each individual member to be addressed.
Despite this until the decision of the First-tier Tribunal (FTT) last June in BlueCrest Capital Management (UK) LLP v HMRC [2022] UKFTT 204 (TC) there had been no detailed judicial consideration...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
