UT (Tax & Chancery) UT/2023/000062 - [2024] UKUT 00273 (TCC)

UT (Tax & Chancery) Case Number: UT/2023/000062

Hearing venue: Rolls Building, London

Heard on: 25/26 June 2024

Judgment date: 6 September 2024

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

Before

MR JUSTICE TROWER

JUDGE SWAMI RAGHAVAN

Between

(1) MULLER UK AND IRELAND GROUP LLP

(2) MULLER DAIRY UK LIMITED

(3) ROBERT WISEMAN AND SONS LIMITED

(4) TM UK PRODUCTION LIMITED

Appellants

and

THE COMMISSIONERS FOR HIS MAJESTY’S

REVENUE AND CUSTOMS

Respondents

Representation:

For the Appellants: Peter Trevett KC and Francis Fitzpatrick KC, Counsel, instructed by Ernst & Young LLP

For the Respondents: Christopher Tidmarsh KC, Imran Afzal, Tomos Rees, Counsel, instructed by the General Counsel and Solicitor for His Majesty’s Revenue and Customs

DECISION