Q&A: CRC v BlueCrest Capital Management (UK) LLP: Court of Appeal

On 17 January 2025 the Court of Appeal handed down the long awaited judgment in the BlueCrest case the first case to consider the test for salaried members of a limited liability partnership (LLP) under the ITTOIA 2005 s 863A-G. The court upheld the tribunals’ decisions on Condition A. The payments were disguised salary. However in an unexpected twist the court found for HMRC in respect of Condition B but not on the grounds expected and remitted the case to the First-tier Tribunal (FTT).

What was the case about?

The question was whether certain members of BlueCrest LLP were salaried members within the meaning of ITTOIA 2005 s 863A and so taxable as employees. In a nutshell HMRC said they were and BlueCrest said they weren’t.

LLPs have a separate corporate identity but are treated for income tax and NIC as traditional partnerships....