Catch 22
The recent decision of the FTT in Inverclyde Property Renovation LLP 2019 UKFTT 0408 (TC) is a very significant one for all LLPs, including those involved in film schemes.
The judgment of Judge Ruthven Gemmell WS feels as if it could have been written by Joseph Heller as it had all the hallmarks of a classic Catch 22.
If an LLP is carrying on a trade or business with a view to a profit it is treated as a partnership (see section 863 ITTOIA 2005), but if not then the LLP falls within the definition of “company” for tax purposes....