Helen Lethaby provides your regular briefing, which this month includes the decision in Eclipse, developments concerning the proposed financial transactions tax, and the informal consultation on lease premium rules.
Eclipse
The First-tier Tribunal (FTT) has been grappling again with the question of what amounts to a trade where the entity seeking to establish trading status is a partnership set up as part of arrangements designed to enable the partners to access income tax reliefs.
In Eclipse Film Partners No. 35 LLP v HMRC [2012] UKFTT 270 (TC) Disney granted the partnership a 20-year licence of rights to exploit and distribute two films which rights the partnership immediately sub-licensed to another Disney company (the distributor) for the same term. The partnership also entered into a...
