HMRC has been successful in the Upper Tribunal in the long running and high value litigation concerning Ingenious Media’s films and games partnerships. The Upper Tribunal (Falk J and Judge Herrington) dismissed appeals by the taxpayer LLPs in their entirety and allowed HMRC’s appeals in relation to the decision of the First-tier Tribunal (Tax Chamber). The total amount in dispute, including follower cases, amounts to over £1.6 billion. The issues included whether the LLPs were trading with a view to profit and whether millions of pounds of expenditure had been incurred wholly and exclusively for the purposes of the LLPs’ (alleged) trades.

Nicholas Macklam acted for HMRC (led by Malcolm Gammie CBE KC and others).

A copy of the decision can be found here.