In Foundation Partners (GP) v HMRC [2021] UKFTT 18 (TC) the First-tier Tribunal (FTT) found that Foundation Partners GP (“the appellant”) had not been trading and upheld HMRC’s decision to disallow a trading loss of c. £36m claimed in its partnership tax return. The FTT also found that the expenditure incurred by the partnership was on capital account and should properly have been accounted for as an investment rather than as stock.
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