Trading and risk
In addition to the badges of trade listed in B1.403–B1.412, the courts also consider risk important in establishing whether there is a trade. This follows recent film partnership tax schemes and is illustrated in the Eclipse1 case where the First-tier Tribunal, the Upper Tribunal and the Court of Appeal unanimously rejected the partnership's claim that it had made trading losses. The First-tier Tribunal observed that the relevant transactions 'did not have the speculative aspect which we would expect to see in trading transactions'. In the Upper Tribunal, Sales J held that 'an element of speculation in the sense of conducting an activity which might result in a
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Web page updated on 17 Mar 2025 16:45