The taxpayer’s appeal in respect of follower notices was allowed, as the earlier case law decision on which the follower notices was based would not have denied the taxpayer the tax relief he had claimed.

Background

The appellant was involved with a limited liability partnership ('Eclipse 10'). Eclipse 10's business was the exploitation of film rights. The appellant joined the Eclipse 10 partnership in March 2006, making a contribution of £29,700,000. He financed that contribution by taking out two bank loans. On his self-assessment return for the tax year 2005/06, the appellant claimed interest relief in respect of the loans.

On 8 March 2017, HM Revenue and Customs (HMRC) issued ten follower notices to the appellant (under FA 2014, Pt 4, Ch 2), one for each tax year in which he had claimed interest.