Court of Appeal furthers uncertainty over salaried members rules (Bluecrest v HMRC)
Tax analysis: The ongoing dispute between HMRC and Bluecrest Capital Management on the scope of the salaried members rules has been sent back to the First-tier Tax Tribunal (FTT) by the Court of Appeal. Any hope that the Court of Appeal could bring some clarity to proceedings was dashed as it held that both parties, the Upper Tribunal (UT), the FTT and HMRC's own published guidance were all wrong and the only recourse was for the FTT to effectively start again. The Court of Appeal held that only influence arising from the terms of the partnership itself, in effect the partnership agreement, was relevant and that practical or de facto influence seemingly does not matter at all. Since neither Tribunal had approached the question in this light hitherto, the Court directed that they now do so now. Written by Tom Rank, tax partner at DWF Law LLP.