Acornwood LLP and others v HMRC

In Acornwood LLP and others v HMRC [2016] UKUT 361 (4 August 2016) the UT upheld the FTT’s decision that the scheme implemented by the Icebreaker Partnerships failed.

All the appellants were members of partnerships which had implemented arrangements giving rise to an accounting loss in each of the partnerships’ first accounting period. The loss was derived from the acquisition of intellectual property rights for a modest sum and the payment of a substantial exploitation fee to an exploitation company. The injection of capital by each member was mainly financed by borrowings which were to be serviced by a guaranteed return on investment for the members. The appellants claimed that they were entitled to sideways loss relief against their income and capital gains tax liabilities (ICTA 1988 ss 380 and 381 TCGA 1992 s 261B...