Supreme Court gives judgement in HFFX LLP v HMRC
The Supreme Court has today given judgment in HFFX LLP v HMRC [2026] UKSC 17, in which James Kirby acted as junior counsel for HMRC. The Justices unanimously dismissed appeals by the taxpayers and by HMRC, with the overall result that the partnership tax avoidance arrangements under appeal did not succeed. In particular, the court held that ‘Special Capital’ received my partners was taxable as their income. It also held that a partner’s right to share in the profits is a ‘determinate legal concept’, which did not include profits channelled to the partners through arrangements which had a commercial as well as a tax avoidance purpose.
The full judgment is available here:
