The appeals of two LLPs’ HMRC’s closure notices were allowed in part, with the LLPs each being entitled to enterprise zone allowances based on an apportionment to determine the expenditure on the relevant interests in buildings.

On 4 April 2011, the appellant limited liability partnerships (LLPs) acquired rights under a construction contract (the ‘Golden Contract’ (GC)) between (among others) a developer and a contractor. The CG related to construction works to be undertaken at a site that was (from February 1996 to 18 February 2006) within an enterprise zone. The rights under the CG were the rights to have data centres built and fitted out (the ‘GC rights’).

In April 2011, the developer made substantial advance payments to the contractor. The appellants considered that these payments were made under the GC as an advance payment for construction works. Two data centres were constructed on the site. However, at no