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Upper Tribunal gives significant judgment in £1 billion Ingenious film scheme case regarding meaning of “with a view to profit” and other matters

Published: Thursday 1 August 2019

Ingenious Games LLP and others v HMRC [2019] UKUT 0226 (TCC)

Jonathan Davey QC has received judgment from the Upper Tribunal in the long running, high profile and high value Ingenious litigation. The Upper Tribunal (Mrs Justice Falk, Judge Herrington) dismissed the LLPs’ grounds of appeal in their entirety and accepted HMRC’s grounds of appeal in relation to aspects of the decision of the First-tier Tribunal (Judge Charles Hellier, Julian Stafford) ([2016] UKFTT 521 (TC)). The case concerns whether limited liability partnerships involved in the film and games industries were trading with a view to a profit, whether millions of pounds of expenditure was incurred wholly and exclusively for the purposes of the partnerships’ trade, and whether the partnerships’ accounts were drawn up in accordance with generally accepted accounting principles. The loss claims in dispute (including in respect of follower partnerships) amount to over £1.6 billion.

Jonathan is acting for HMRC with Malcolm Gammie QC (One Essex Court), Catherine Addy QC (Maitland Chambers), Michael Jones (Gray’s Inn Tax Chambers), Imran Afzal (Field Court Tax Chambers), Ruth Hughes (5 Stone Buildings), Sam Chandler (5 Stone Buildings), Nicholas Macklam (Radcliffe Chambers) and Oscar Schonfeld (One Essex Court). The Appellant LLPs are represented by Pushpinder Saini QC (Blackstone Chambers), David Milne QC (Pump Court Tax Chambers), Richard Vallat QC (Pump Court Tax Chambers), James Rivett QC (Pump Court Tax Chambers), Edward Waldegrave (Pump Court Tax Chambers) and George Molyneaux (Blackstone Chambers).

Read the full judgment here.