I was delighted to see that the Revenue acted on Friday to close a loophole in the UK's law that was allowing esoteric forms of partnership to be abused to provide those with considerable wealth (mainly from the City of London) to avoid paying the tax that they clearly owe. The partnerships in question were investing in such things as films where all costs can be immediately written off to generate taxable losses at the time investment takes place, so deferring if not cancelling tax liabilities for a considerable period.

Losses from such partnerships that can be offset have now been restricted to £25,000 in a year. That will, apparently kill this activity altogether. Which has to be great news for the UK economy.

And as I'm not a film buff - and believe that most films ever made have contributed very little to the sum of human well-being, I can live without them too. Others might not agree, but this is a case (in my opinion) where market forces should prevail without the benefit of subsidy except in the most exceptional of cases.

What a radical idea!!! It should go down well in the City.

PS I gather a 'motive test' is to also be added so that if the transaction is not tax motivated higher relief may be available. Yet more good news. We are moving ever closer to a general anti-avoidance principle.