The Supreme Court has handed down its long-awaited decision on the interpretation of the LLP salaried member rules, dismissing the taxpayer's appeal on the central point of statutory interpretation but remitting a related factual question to the tribunal for further consideration.

The decision provides helpful clarity on how the rules should be applied in practice, particularly in relation to the assessment of a member's influence over the affairs of the LLP. However, the remittal of the underlying factual dispute means that LLPs with similar arrangements should not treat the matter as fully resolved, and should continue to monitor developments as the case returns to the tribunal.

LLPs that have not recently reviewed their member arrangements against the salaried member rules should consider doing so in light of this decision, particularly where membership terms have not changed materially since they were first put in place.