Icebreaker and ICTA 1988 s 74

The decision of the Upper Tax Tribunal (Vos J) in Icebreaker 1 LLP v HMRC concerned an appeal by Icebreaker in respect of whether its expenditure incurred on its first day of trading in film production and distribution gave rise to allowable losses. Vos J set aside the decision of the First-tier Tribunal and allowed the appeal in part. However, he concluded (albeit on different grounds to the FTT) that the taxpayer should be denied a trading deduction in respect of the bulk of the expenditure. The case was very much decided upon its own particular facts and its structure having been poorly implemented.