In HMRC v Hamilton & Kinneil (Archerfield) and others [2015] UKUT 130 (20 March 2015) the UT dismissed a claim for loss relief by a member of a limited liability partnership (LLP).
The Renaissance Club at Archerfield (RCA) an LLP which ran a golf course had made substantial trading losses. It had sought to surrender its losses to one of its members HKAL. The issue was the calculation of the limit for relief claimed by members of an LLP under ICTA 1988 s 118ZC. Under this provision the amount of loss relief which can be claimed by a member of an LLP is ‘the greater of the amount subscribed by it and the amount of its liability on a winding up’.
HMRC contended that this was a straightforward case. HKAL had made no contribution and under the LLP agreement had no liability to...
