This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Taxpayer was ‘entitled’ to payments arising from rights under a film scheme

By Mark McLaughlin, April 2023

‘Minimum annual payments’ under a film scheme were income to which the taxpayer was ‘entitled’ for tax purposes, notwithstanding that the taxpayer had assigned away his rights in those payments. 

HM Revenue and Customs (HMRC) issued discovery assessments to the appellant for the tax years 2010/11, 2011/12 and 2012/13. The assessments related to income tax which HMRC contended was due on certain ‘minimum annual payments’ (MAPs) arising as part of a scheme for the exploitation of film rights in which the taxpayer had participated. The film rights were sold, and an income tax loss was intended to arise in the first year by virtue of the difference between the total cost of acquiring the right and the value of the consideration received under a distribution agreement. 

The appellant’s appeals to the First-tier Tribunal (FTT) and Upper Tribunal (UT) were dismissed. The appellant appealed to the Court of

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Lack of assistance given to the taxpayer by HMRC contributed towards grounds for late appeal
By Mark McLaughlin, September 2025
Non-arrival of HMRC ‘nudge’ letters was not a reasonable excuse for late notification
By Mark McLaughlin, December 2023
Transfers of assets to SIPPs were not ‘contributions paid’ and no debt was created
By Mark McLaughlin, October 2023
Mixed partnership rules applied to a partner on profits allocated to a company
By Mark McLaughlin, September 2021
Taxpayer did not deliberately withhold information in failing to file tax returns
By Mark McLaughlin, February 2021