R Poll v HMRC

In R Poll v HMRC [2021] UKFTT 223 (TC) (7 May 2021) the FTT held that the taxpayer who carried out an avoidance scheme involving film distribution rights where the activities involved purchasing income streams was not entitled to trading loss relief because he was not carrying on a trade. The FTT also found that there was no time limit within which HMRC had to issue closure notices.

P set up a film business using an arrangement called Premiere Picture Sovereign (PPS). The business involved buying film distribution rights and then selling them in return for a share of any income generated by the film. Due to the way film distribution rights are valued for accounting purposes the accounts for P’s first period of account showed a loss of nearly £600 000. In his tax return P...