The Supreme Court’s decision in Tower MCashback sheds new light on the approach of the courts to arrangements involving money moving in a circle. While mere circularity should not be fatal, when allied with particular non-commercial features it can be sufficient to defeat a taxpayer’s case. In particular, parties involved in arrangements which are designed to give rise to tax relief for expenditure funded by non- or limited recourse finance should be wary of the Courts proceeding on the assumption, unless disabused, that the ‘soft’ finance is part of the purpose of the expenditure and thus does not enjoy relief.