Limitation to loss relief in relation to partnership share
In Hamilton & Kinneil v HMRC (TC03485 – 10 April 2014) Hamilton & Kinneil (HK) claimed loss relief in relation to losses made by an LLP of which it was a member together with a Delaware incorporated LLC (which was an investment vehicle for US investors). The LLP was set up to develop and run a golf course.
HMRC had denied the claim on the basis that ICTA 1988 s 118ZC limited a claim for loss relief to the greater of the amount the member had contributed as capital or the amount he was liable to contribute in the event of a winding up.
Although the FTT did not reach a unanimous decision it held that the legislation was not ambiguous and so there was no reason to refer to extra-statutory material.
Applying the legislation the amount...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Limitation to loss relief in relation to partnership share
In Hamilton & Kinneil v HMRC (TC03485 – 10 April 2014) Hamilton & Kinneil (HK) claimed loss relief in relation to losses made by an LLP of which it was a member together with a Delaware incorporated LLC (which was an investment vehicle for US investors). The LLP was set up to develop and run a golf course.
HMRC had denied the claim on the basis that ICTA 1988 s 118ZC limited a claim for loss relief to the greater of the amount the member had contributed as capital or the amount he was liable to contribute in the event of a winding up.
Although the FTT did not reach a unanimous decision it held that the legislation was not ambiguous and so there was no reason to refer to extra-statutory material.
Applying the legislation the amount...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
