
Court of Appeal hands down judgment in BlueCrest Salaried Members case
22nd Jan 2025
James Kirby was instructed as junior counsel for the successful appellant, HMRC.
The Court of Appeal on 17 January 2025 handed down judgment in HMRC v BlueCrest Capital Management (UK) LLP. The judgment clarifies the meaning of Condition B of the Salaried Members rules, which determine whether LLP members pay tax as partners or as employees. In doing so, it overrules the decisions of the First-tier and Upper Tribunals, which were found to have overlooked the importance of the mutual rights and duties of the members when assessing their influence over the affairs of the LLP.
James Kirby was instructed as junior counsel for HMRC in the Court of Appeal and was responsible for its submissions on the partnership law background to the case. HMRC’s appeal was successful and the case has now been remitted to the First-tier Tribunal for further fact-finding.
