Ingenious Film Partners in the Court of Appeal: lights, camera, action!

The Court of Appeal has issued its decision in the Ingenious Film Partners case, giving a somewhat pyrrhic victory to the taxpayers. After their loss in the Upper Tribunal, the taxpayers were only granted leave to appeal on limited grounds, such that although they have been successful in the Court of Appeal, only a small proportion of the losses originally claimed have been allowed. In a wider context, the case illustrates the importance of good case management (not least establishing the facts in the FTT) and a useful reminder of the partnership rules. The analysis of how to approach the question of whether a trade exists in the context of complex transactions is also interesting.