Muller UK & Ireland Group LLP and others v HMRC

In Muller UK & Ireland Group LLP and others v HMRC [2023] UKFTT 221 (TC) (22 February 2023) the First-tier Tribunal (FTT) held that the three corporate members of a limited liability partnership (LLP) were related to all of its corporate members despite not being a company and were therefore not entitled to relief for their share of amortisation debits accrued in respect of intangible fixed assets and goodwill (‘the assets’) acquired by the LLP from those members.

The three corporate members transferred the assets to the LLP in 2013 in return for membership interests in the LLP (‘the transfer’). The LLP recorded the assets at their fair value in its accounts and amortised them over five years on a straight-line basis in those accounts. In computing their share of the LLP’s profits each corporate member took a tax deduction for their share of the amortisation debits...