James Kirby successful in Court of Appeal LLP tax case
22nd Jul 2024
James Kirby represented HMRC in HMRC v HFFX LLP [2024] EWCA Civ 813, the latest round of litigation relating to the taxation of LLP members’ income.
In a judgment handed down on 19 July 2024, the Court of Appeal held that individual members of an LLP who receive remuneration in the form of “Special Capital” from a corporate member are liable to income tax on those receipts, even if the payments are made on a discretionary basis. The tax at stake was around £22.5m.
The judgment also includes an interesting discussion of fetters on contractual discretions in an LLP context (and approves the reasoning in Reinhard v Ondra LLP, in which Jeremy Callman and Naomi Winston appeared).
James Kirby
Call 2017
