The Upper Tribunal held (among other things) that the appellant LLPs were not trading, and that none of the LLPs were carrying on a trade with a view to profit. 
 
Three LLPs were involved in the production of films and video or computer games. The LLPs contended that, in their early years, those activities resulted in trading losses, which their investors could in appropriate circumstances set against their other taxable income. HM Revenue and Customs (HMRC) denied the loss relief claims. The LLPs appealed. 
 
The First-tier Tribunal (FTT) ([2016] UKFTT 521 (TC)) concluded: (1) Two of the LLPs (IFP2 and ITP) were carrying on a trade, but the third LLP (IG) was not; (2) None of the LLPs were carrying on a trade with a view to profit if ‘profit’ was to be determined on the ‘Ingenious basis’ (as defined). However, if ‘profit’ was understood to be determined on the ‘30