20 March 2015

UT Decision: HMRC v Hamilton & Kinneil (Archerfield) Ltd

INCOME TAX /CORPORATION TAX – Losses – interpretation of s118ZC ICTA 1988 limit on loss relief for members of LLPs – whether appellant’s third share in capital of LLP was “contributed” as capital (s118ZC(3) ICTA) on basis that this was the amount appellant had exposed to risk– no – whether appellant’s third share was included in amount the appellant was “liable to contribute” to the assets of the LLP in the event LLP was wound up (s118Z(4)(a) ICTA) – no – appeal from Tax Chamber allowed

Julian Ghosh QC & Thomas Chacko, instructed by Springfords, acted for the Respondents.

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