In The Queen on the application of De Silva and Dokelman v HMRC (TCC-JR/10/2012 – 15 April 2014) the UT dismissed the claimants’ application to quash HMRC’s refusal to allow losses allegedly realised in film partnerships to be set off against individual partners’ general income.
The partnerships’ claims for losses had been challenged by HMRC and a compromise agreement had been entered into allowing losses at a reduced level from that claimed originally by the partnerships.
The two taxpayers in the appeal however claimed losses (corresponding to their share of the partnerships’ losses) on the basis of the original higher claims of the partnerships. They wished to carry back those losses against earlier income.
HMRC wrote to both taxpayers informing them that their self-assessment returns were being amended on the basis of the lower amount of partnership losses referred to in the compromise agreement. In the absence of a...
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