Albermarle 4 LLP v Revenue & Customs [2013] UKFTT 83 (TC) (30 January 2013)

Albermarle 4 LLP v Revenue & Customs [2013] UKFTT 83 (TC) (30 January 2013)

The losses in question were trading losses, not property business losses, as the appellant’s intention at acquisition was to sell the properties after letting them. HMRC had no statutory basis under s29 or s30B TMA 1970 to amend the 2005-06 partnership statement as the conditions for a discovery amendment were not met.

Citation
[2013] UKFTT 83 (TC)
Parties
Appellant: Albermarle 4 LLP; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
30 January 2013
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed in principle
Legal Topics
Income Tax, Corporation Tax, Trading Losses, Property Business Losses, Discovery Amendment, Partnership Taxation
Tax Law Income Tax Corporation Tax Trading Losses Property Business Losses Discovery Amendment Partnership Taxation

Case Brief

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Parties

Albermarle 4 LLP

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether losses from purchase and resale of commercial properties by the appellant are attributable to its UK property business or are trading losses
  2. 2 Whether HMRC had statutory basis under s29 or s30B TMA 1970 to amend the appellant’s tax return for 2005-06

Ratio Decidendi

The losses in question were trading losses, not property business losses, as the appellant’s intention at acquisition was to sell the properties after letting them. HMRC had no statutory basis under s29 or s30B TMA 1970 to amend the 2005-06 partnership statement as the conditions for a discovery amendment were not met.

Court Disposition

Appeal allowed in principle

Orders

  • The amendment to the partnership statement for 2005-06 is ineffective and set aside.
  • Losses for the relevant years are to be treated as trading losses.