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Return of the taxman

23 August 2016 / Ruth Hughes , Sam Chandler
Issue: 4564 / Categories: Comment & Analysis

The tribunals’ findings in Ingenious and Icebreaker.


  • Litigation of comple x film schemes that involved sideways loss relief claims.
  • The Ingenious decision included an analysis of the meaning of trading with a view to a profit for a limited liability partnership.
  • Commercial purpose of members’ borrowings in Icebreaker.
  • Agreement that arrangements were not shams.

As Woody Allen said in To Rome with Love (2012) ‘If something is too good to be true you can bet it’s not.’

August has been quite a good month for HMRC in that it has celebrated victories in the long-running Ingenious and Acornwood (also known as Icebreaker) litigation. Both schemes attempted to use sideways loss relief in their attempts at avoidance and this was partly successful for some of the partnerships (not the one to do with computer games) in Ingenious. HMRC was victorious on every point in Acornwood [2016] UKUT 0361 (TCC). The department has...

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