R (on the application of De Silva and another) v HMRC

In R (on the application of De Silva and another) v HMRC [2017] UKSC 74 (15 November 2017) the Supreme Court found that claims made by partners had not been stand alone but had been contained in their returns so that HMRC was entitled to enquire into those claims under TMA 1970 ss 8 and 8A.

The appellants were limited partners in a number of film partnerships. The partnerships had entered into a compromise agreement with HMRC (under TMA 1970 s 54) which provided that the partnerships would be allowed losses at a considerably lower level than claimed in their tax returns. HMRC had then written to the partners explaining that their individual tax returns would be amended to only allow claims to carry-back partnership trading losses reflecting the losses agreed in the partnership settlement agreement. The partners had applied for...