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FTT decides sale of LLP capital accounts not subject to income tax (Hoyle and others v HMRC)

Published on: 09 December 2024

Table of contents

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  • Case details

Article summary

Tax analysis: In Hoyle, the First-tier Tax Tribunal (FTT) held that the anti-avoidance provisions in Chapter 5 of Part 13 of the Income Tax Act 2007 (ITA 2007) did not apply to the disposal of the appellants’ capital accounts in limited liability partnerships (LLPs) engaged in leasing film rights. This was because, following the judgment in Samarkand v HMRC [2017] EWCA Civ 77, as a matter of fact and law, the LLPs film leasing activity was not a trading activity for tax purposes.

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