.png)
.png)
P Degorce (TC2593)
The taxpayer was a hedge fund manager who took part in an avoidance scheme involving the purchase of film distribution rights funded in part by a loan.
He was one of 12 taxpayers who took part in the same arrangement; it was agreed that his would be the lead case.
He had claimed loss relief of £20.1m under TA 1988 380(1) as a result of the transactions. HMRC disallowed the claim saying the deal had been carried out solely to avoid tax.
The First-tier Tribunal applied the ‘badges of trade’ criteria to decide if the taxpayer was trading. It found that the transaction was a one-off with no element of repetition. It bore no relation to the taxpayer’s business as a hedge fund manager. The distribution of the film was an integral part of the composite transaction.
The taxpayer had no intention of selling the...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
