HMRC v Lansdowne Partners Ltd Partnership

In HMRC v Lansdowne Partners Ltd Partnership (CA – 20 December) a limited partnership carried on business as a fund manager. In August 2005 it submitted its partnership statement for 2004/05 claiming a deduction for certain ‘rebated fees’ including fees which it had reimbursed to its partners as well as to external investors. In August 2008 HMRC amended the partnership statement on the basis that the fees rebated to partners were not allowable as deductions. The partnership appealed contending firstly that it was entitled to a deduction for the fees and alternatively that HMRC’s amendment was outside the statutory time limit. The General Commissioners accepted both these contentions and HMRC appealed to the CA. The CA unanimously held that the rebated fees were not allowable deductions as they had not been wholly and exclusively for the purpose of...