TC09548 - [2025] UKFTT 00700 (TC)

In relation to this part of HMRC’s “case”, I said:

“[16] My understanding from having considered the papers in the Bundle, is that having taken advice from Tax Counsel and Ernst & Young (now EY), the Appellant concluded that the SMR did not apply because:

(1)

the LLP Members failed Condition A (see page 200ff of the Bundle, and in particular para 16 at page 202); and

(2)

for 2018-19 it was expected that Condition C would also be failed.

[17] Those conclusions were retested and confirmed after the discovery of the fraud, albeit the Appellant made a without prejudice offer in relation to 11 LLP members on a hindsight basis (which is not how the SMR are required to be applied).

[18] The Appellant also provided further information, in particular:

(1)

its letter of 16 September 2022 (page 670 of the Bundle) and Appendices 5 and 6 to that letter; and

(2)

its letter of 28 April 2023 (page 786) and the related Appendix.”

I concluded that I was “unable to understand why HMRC have said in the SoC that the Appellant has failed to provide “any evidence of what the SMR position is”.