(1) MULLER UK AND IRELAND GROUP LLP (2) MULLER DAIRY UK LIMITED (3) ROBERT WISEMAN AND SONS LIMITED (4) TM UK PRODUCTION LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2024] UKUT 00273 (TCC)
Upper Tribunal Tax and Chancery decision of Mr Justice Trower and Judge Swami Raghavan on 06 September 2024
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CORPORATION TAX – acquisition of intangible fixed assets and goodwill by LLP from its members (who were each members of same corporate group) – interaction of “related party” provisions in Part 8 CTA 2009 with Part 17 (s1259) CTA 2009 requirement to calculate corporate partner’s profits as if trade carried on by notional UK resident company – whether HMRC correct that ownership characteristics of such notional company reflected ownership of LLP which meant “related party” rule breached and debits on amortisation of assets accordingly denied– yes – appeals dismissed – appellants’ argument that changes by FA 2016 were defective and could not be remedied under Inco Europe approach rejected on obiter basis