In N Walewski v HMRC [2021] UKUT 133 (TCC) (15 June 2021) the Upper Tribunal (UT) confirmed the decision of the FTT that the mixed partnerships rules in ITTOIA 2005 s 850C applied to reallocate the profits of two partnerships from a corporate to an individual partner.
W had set up an equity fund in Luxembourg managed by two UK limited liability partnerships AAM and AF. W was a partner in both LLPs and set up W Ltd which became a corporate partner in both. W was W Ltd's only director and employee. HMRC assessed W to income tax on £20m of profits from AAM and AF representing the entire profit share of W Ltd reallocated to him under the mixed partnerships rules in ITTOIA 2005 s 850C on grounds that those profits were not earned by W Ltd but...
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In N Walewski v HMRC [2021] UKUT 133 (TCC) (15 June 2021) the Upper Tribunal (UT) confirmed the decision of the FTT that the mixed partnerships rules in ITTOIA 2005 s 850C applied to reallocate the profits of two partnerships from a corporate to an individual partner.
W had set up an equity fund in Luxembourg managed by two UK limited liability partnerships AAM and AF. W was a partner in both LLPs and set up W Ltd which became a corporate partner in both. W was W Ltd's only director and employee. HMRC assessed W to income tax on £20m of profits from AAM and AF representing the entire profit share of W Ltd reallocated to him under the mixed partnerships rules in ITTOIA 2005 s 850C on grounds that those profits were not earned by W Ltd but...
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