Visit JCPCUKSC/2024/0123
•
TAX
Atkins and others (Appellants) v Commissioners for His Majesty's Revenue and Customs (Respondent)
Case summary
Case ID
UKSC/2024/0123
Parties
Appellant(s)
(1) Stephan Atkins
(2) Yuri Bedny
Respondent(s)
Commissioners for His Majesty's Revenue and Customs
Issue
(1) Does section 850 of the Income Tax (Trading and Other Income) Act 2005 (“ITTOIA”) apply to profits retained by a corporate member of a limited liability partnership and subsequently reallocated to individual members of that partnership pursuant to an incentivisation and deferral arrangement? (2) If the answer to (1) is no, are the profits allocated by a corporate member of a limited liability partnership to its individual members under an incentivisation and deferral arrangement chargeable income tax, either (A) as miscellaneous income under section 687 ITTOIA; or (B) as sales of occupation income under the Income Tax Act 2007 (“ITA”)?
Facts
This appeal concerns the taxation of profits made by a limited liability partnership retained by a corporate member of that partnership and then reallocated to individual members under an incentivisation and deferral arrangement. HFFX LLP was a partnership operating within an investment management business known as GSA. HFFX LLP was a mixed partnership in the sense that its members comprised both individual members, who designed and implemented software used by GSA funds for high-frequency foreign exchange trading, as well as two corporate members, one of which was GSA Member Limited (“GSAM”).
Date of issue
19 June 2024
Judgment details
Judgment date
17 June 2026
Neutral citation
[2026] UKSC 17
