Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

No time limit for issuing closure notices

19 July 2021
Issue: 4801 / Categories: Tax cases
R Poll (TC8172)

The taxpayer set up a film business using Premiere Picture Sovereign an arrangement promoted by Premiere Picture. The business involved buying film distribution rights and selling them in return for a share of any income generated by the film. As a result of the way film distribution rights are valued for accounting purposes the taxpayer’s business accounts for the first accounting period showed a loss of £583 881. In his 2007-08 tax return the taxpayer claimed to carry back the losses and set them against other income for the previous three years. The business generated further losses in the next two years.

After enquiries into the taxpayer’s returns HMRC issued closure notices disallowing the loss claims on the basis that the film business was not a trade or even if it was it was not commercial. The taxpayer appealed on the grounds that...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon