The decision of the Court of Appeal in Samarkand Film Partnership No. 3 & Ors v Revenue and Customs  EWCA Civ 77 has been to dismiss appeals from the Proteus Film Partnership and Samarkand Film Partnership.
This decision marks another milestone in HMRC's recent tax litigation against film partnership schemes used for the management of tax.
This decision could potentially impact a significant number of other cases waiting to be heard in court; signalling to investors of film partnerships that HMRC is progressing in its objectives.
This not only has wide effects on the investors of the schemes but it also raises issues surrounding the duty of care owed by their advisors who sold the partnerships as a deferral of tax rather than tax avoidance. It will be interesting to observe how this develops.
If you need guidance or advice on your legal position in relation to tax planning, please contact Moore Blatch on 023 8071 8000.
The court confirmed HMRC’s view that the partnerships were not trading and there were never any losses available to investors to reduce their tax bills.