N Barklem v HMRC

In N Barklem v HMRC [2024] EWHC 651 (Ch) (22 March 2024) the High Court (HC) struck out the taxpayer’s claims for declaratory relief the substance of which was a declaration that HMRC notices issued under TMA 1970 s 28B(4) disallowing his claim for sideways relief were invalid.

Mr Barklem (the claimant) was a partner in a film partnership Film 2K Partnership (Film 2K). Film 2K made losses in the tax years 1999/2000 and 2000/01 (the ‘relevant periods’). Those losses were stated to be trading losses and were apportioned between its partners in accordance with TMA 1970 s 12AA. The claimant filed self-assessment tax returns for the relevant period claiming sideways relief for his share of the partnership’s losses under ICTA 1988 ss 380 and 381. In order to claim sideways relief s 381(4) required that Film 2K was trading on a commercial basis and in...