The tribunal ruled that HMRC was correct to reduce the LLP’s losses to nil on the basis that it was not carrying on a trade in Acamar Productions LLP [2022] TC 08405/V.

This decision relates to an appeal against two closure notices, each dated 14 July 2017, amending the partnership tax returns of the Appellant in relation to the tax year ending 5 April 2013 (tax year 2012/13) and the tax year ending 5 April 2015 (tax year 2014/15). 

Each of those partnership tax returns disclosed a trading loss, for the amount of £3,234,286 in respect of the tax year 2012/2013 and £45 for tax year 2014/2015. 

In each case, the trading loss disclosed in the relevant partnership tax return was allocated to the members of Acamar Productions in accordance with the terms of the document governing the structure of the LLP. Each closure notice amended the relevant partnership tax return in such a way as to reduce the relevant loss to nil.