Charlotte Macdonald v The Commissioners for HMRC

Charlotte Macdonald v The Commissioners for HMRC

Although the Shoot was carried on a commercial basis, it was not carried on with a view to the realisation of profits; the activities of the Estate and the Shoot are not sufficiently interlaced or dovetailed to constitute a larger undertaking; therefore, restrictions under s 66 ITA 2007 bar the Appellant from claiming loss relief against general income.

Parties
Appellant: Charlotte Macdonald; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
05 August 2025
Procedural Posture
Income Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Loss Relief, Commerciality Test, Discovery Assessment, Closure Notices
Tax Law Income Tax Loss Relief Commerciality Test Discovery Assessment Closure Notices

Case Brief

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Parties

Charlotte Macdonald

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Appellant's trade losses from the Shoot can be set-off against general income under section 64 of the Income Tax Act 2007
  2. 2 Whether restrictions under section 66 ITA 2007 bar the Appellant from claiming the losses against general income
  3. 3 Whether the Shoot was carried on 'on a commercial basis' and 'with a view to the realisation of profits'

Ratio Decidendi

Although the Shoot was carried on a commercial basis, it was not carried on with a view to the realisation of profits; the activities of the Estate and the Shoot are not sufficiently interlaced or dovetailed to constitute a larger undertaking; therefore, restrictions under s 66 ITA 2007 bar the Appellant from claiming loss relief against general income.

Court Disposition

Appeal dismissed

Orders

  • Assessment and Closure Notices upheld
  • No sideways loss relief due on losses arising from the Shoot