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Ingenious Games LLP, Inside Track Productions LLP, Ingenious Film Partners 2 LLP v CRC, Court of Appeal, 4 August 2021
The Ingenious group established limited liability partnerships (LLPs) in which high net worth individuals could invest. Those partnerships then became part of the overall financing arrangements for various films. The investors could obtain sideways loss relief for any losses generated in the partnerships but HMRC disputed their claims.
After appeals to the First-tier Tribunal and Upper Tribunal the taxpayers appealed to the Court of Appeal on two points - whether the LLPs were trading and if they were whether they were trading with a view to profit.
The Upper Tribunal had overturned the First-tier Tribunal’s finding that the film partnerships were trading and were doing so with a view to a profit.
On the trading issue the Court of Appeal considered the Upper Tribunal’s findings of error in the lower tribunal’s reasoning were not substantiated.
The court said ‘the meticulous process by which the First-tier Tribunal sought...
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