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Recent Work

Andrew Thornhill is currently heavily engaged in two areas, exits from film schemes and contractors' appeals to the loan charge. Over the last 15 years or so HMRC has succeeded in winning cases that establish film leasing not to be a trade but an investment. In many instances, taxpayers who successfully claimed deductions for film expenditure on the basis that they carried on a film leasing trade are free to assert that they are not trading. In which case the exit charges for those leaving film leasing would not apply. A long awaited decision in the Hoyle case (heard as long ago as May 2022) will clarify the position. As regards the loan charge (and also open years where HMRC claim tax on earnings in relation to contractor schemes) there are several possible challenges to liability. One line of defence rests on European law – the point was approached in the Finucane case in Scotland but Lord Tyre held the matter had to be heard in the Tax Tribunal. A second line of defence rests on tax credits. The argument is that the original receipt of the loan gave rise to earnings in respect of which the contractor obtains a tax credit. The tax credit enables him to argue that he has paid the tax and that this payment reduces the loan charge to nil. The Loan Charge Action Group proposes to bring a test case from which any taxpayer with a loan charge can benefit on joining the group. Andrew Thornhill is also engaged in exploring new ways of using life policies to plan for inheritance tax and ways in which pension schemes can invest in residential property. He is happy to consider new ideas and develop them with clients.

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Case profile

- John Mander Pension Trustees Limited v HMRC ?(Supreme Court) - RFC 2012 plc (in liquidation) (formerly The Rangers Football Club plc) v Advocate General for Scotland (Supreme Court) - Clavis Liberty Fund 1 LP v HMRC (First-tier Tribunal) - Scotts Atlantic v HMRC (Upper Tribunal) - Laird v CIR (House of Lords) - Eversden v CIR (Court of Appeal) - Dextra Accessories v MacDonald (Court of Appeal) - Optos (Special Commissioners)

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Publications

- Potter & Monroe’s Tax Planning with Precedents, 4th – 7th Editions - Passing Down the Family Business/the Family Farm - Contributor to Gore-Brown on Companies and Kerr on Receivers

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Memberships

- Revenue Bar Association - S.T.E.P. - London Common Law & Commercial Bar Association

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