BlueCrest- UK Supreme Court Clarifies “Significant Influence” Under the LLP Salaried Members Rules

Short summary

UK Supreme Court confirms LLP members' significant influence must stem from legally enforceable rights, not informal performance or commercial importance. Portfolio managers and traders may still be taxed as employees even if responsible for major investment decisions. Asset management firms should review member agreements to ensure compliance with salaried members rules.

• •Significant influence under LLP salaried members rules requires formal legal/contractual rights, not de facto commercial importance
• •Individual performance metrics and investment responsibilities don't provide legal influence for tax purposes
• •Investment management firms must evaluate member agreements against three statutory conditions

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