In Investec Asset Finance and Investec Bank v HMRC [2016] UKFTT 356 (24 May 2016) the FTT found that expenditure incurred by financial dealers in relation to tax positive partnerships was deductible and that HMRC could raise a point mentioned in the cover letter of a closure notice.
The two appellants both financial dealers in the Investec group had participated in transactions with the purpose of exiting from leasing partnerships without being taxed on any receipts of rental income or balancing charge. The appellants claimed that they should only be taxed on the net profits from their activities deducting the costs of purchasing the partnership interests from the rentals or the sale proceeds of the rentals received whilst they were the relevant partners. HMRC contended either that the relevant costs were non-deductible or that the appellants should be taxed both on the net profits in...
