‘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