Chris Bates and Judy Harrison review the decision of the First-tier Tribunal in Eclipse 35 in which it was held that a film leasing partnership was not trading.
The First-tier Tribunal in Eclipse Film Partners No 35 LLP v HMRC [2012] UKFTT 270 TC held that a film partnership was not trading. Two points of particular interest have arisen as a result of the Eclipse decision. The first is that it is the second recent case in which a film partnership has been held not to be trading (Samarkand Film Partnership No.3 [2012] SFTD 1 being the other case). Whilst Samarkand is currently being appealed and it seems likely that Eclipse intend to appeal these two successes are likely to encourage HMRC...
