Income tax – partnerships engaging in sale and leaseback of one or two films – loss claimed by partners from film acquisition relief provisions of ss130-140 ITTOIA. Issues arising: (1) was partnership carrying on a trade-held no;(2) was business carried on on a commercial basis (ss380,381,384 ITTOIA)-held no; (3) was business carried on with expectation of profit -yes;(4 ) was the business the exploitation of films (s136(a) ITTOIA)-yes;(5 )was the relevant expense incurred on the acquisition of films (s130(3))? (6) was it incurred wholly and exclusively for the business? (7) what was the effect of the ‘relevant period’ provision in s 138? (8) what was the effect of the partnership loss rules in s 118ZE and the 2008 regulations? (9) were fees paid to an arranger of the transactions capital in nature? (10) were such fees paid wholly and exclusively for the purposes of the partnership business? (11 )to what accounting period were such fees properly attributable?
Citations:
[2011] UKFTT 610 (TC), [2012] SFTD 1
Links:
Jurisdiction:
England and Wales
Income Tax
Updated: 16 May 2022; Ref: scu.449583