The UK Court of Appeal confirmed that the ‘related party’ rules in Part 8 of the Corporation Tax Act 2009 apply to LLP structures.
Background
In Muller UK & Ireland Group LLP v HMRC [2026]1 (“Muller”), a dispute arose from an internal restructuring within the Muller group. The appellants included three members of the Muller group (the “Corporate Members”). In 2013, the Corporate Members transferred their respective trades and assets, including goodwill and intellectual property, to another group entity, a UK LLP (Muller UK and Ireland Group LLP (the “Muller Partnership”)).
The Muller Partnership recorded the assets at fair value and amortised the assets and goodwill over five years in its accounts. The Corporate Members, in calculating their taxable profits from the Muller Partnership, claimed tax deductions for that amortisation under the gateway provision in Part 8 of the Corporation Tax Act 2009 (“CTA”). His Majesty's Revenue and Customs (“HMRC”) denied the deductions on the
