The decision of the Upper Tribunal in Eclipse confirmed that the film partnership in that case was not trading. As Chris Bates and Judy Harrison explain, the decision is also important for what it tells us about the Upper Tribunal’s ability to hear appeals.
The Upper Tribunal in Eclipse Film Partners No. 35 LLP v HMRC [2013] UKUT 0639 (TCC) has confirmed that a film partnership was not trading.
The aim of the Eclipse transaction was that individuals would borrow to invest in a limited liability partnership (the LLP) and would by making a prepayment in respect of the interest receive a large current year tax deduction for the interest due over the life of the loan.
