In T Good v HMRC [2021] UKUT 281 (TCC) (18 November 2021) the Upper Tribunal (UT) upheld the FTT’s decision that a film avoidance scheme did not achieve its desired result in that the income was taxable and the interest was not deductible.
The scheme required the taxpayers to invest (using a combination of their own funds and borrowed money) in film distribution rights. The taxpayers bought and the sold film distribution rights so that they were entitled to an ongoing share in the profits of the films but this was subject to a minimum annual payment (MAP). The MAPs were intended to enable them to meet their loan interest obligations. The scheme sought to generate a tax loss from the fees and expenditure on the film rights the income not to be taxable and for the interest to be tax...
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In T Good v HMRC [2021] UKUT 281 (TCC) (18 November 2021) the Upper Tribunal (UT) upheld the FTT’s decision that a film avoidance scheme did not achieve its desired result in that the income was taxable and the interest was not deductible.
The scheme required the taxpayers to invest (using a combination of their own funds and borrowed money) in film distribution rights. The taxpayers bought and the sold film distribution rights so that they were entitled to an ongoing share in the profits of the films but this was subject to a minimum annual payment (MAP). The MAPs were intended to enable them to meet their loan interest obligations. The scheme sought to generate a tax loss from the fees and expenditure on the film rights the income not to be taxable and for the interest to be tax...
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