Intangible claim

The taxpayer company supplied management services to its subsidiaries and associated businesses one of which was Armajaro Asset Management (AAM) a limited liability partnership that provided investment management services to hedge funds.

The taxpayer acquired the partnership interests of three members of AAM in March 2008. A new limited liability partnership agreement was drawn up stating that the members of AAM were the taxpayer its subsidiary Armajaro Ltd and T.

The taxpayer – which had full control of the voting and management of AAM – claimed intangibles relief under FA 2002 schedule 29 in respect of its acquisition of the partnership interests in the three members of AAM.

HMRC said relief was not due. The taxpayer appealed.

The First-tier Tribunal noted AAM was a limited liability partnership carrying on a trade profession or other business with a view to profit and was...