Corporation Tax – Claims for Losses In Two Partnership Tax Returns of An Llp – whether the LLP was carrying on a trade – no, because, properly construed, the LLP’s activities amounted to investment and not trading – whether the LLP had a view to profit – no, because the LLP was indifferent as to whether or not it made a profit – whether the accounts of the LLP in its first period of account were prepared in accordance with GAAP – no, because the accounts did not properly record the substance of the relevant transaction – whether, assuming that the LLP was carrying on a trade and the accounts were prepared in accordance with GAAP, the losses shown in those accounts would have been deductible as a trading expense – no, because, even on the assumption that the LLP was trading, the expense in question would not have been wholly and exclusively incurred for trading purposes and would have been capital in nature – whether, on the assumption that the LLP was trading, certain expenses incurred in a later period of account in which a loss arose would have been deductible as trading expenses – certain of those expenses were deductible but others were not because they had not been wholly and exclusively incurred for trading purposes and the fact that they were not deductible meant that no loss would have arisen in the later period of account – appeal dismissed
Citations:
[2022] UKFTT 74 (TC)
Links:
Jurisdiction:
England and Wales
Corporation Tax
Updated: 08 May 2022; Ref: scu.675629