Derry, R (on the application of) v HM Revenue and Customs [2017] EWCA Civ 435 (20 June 2017)

Derry, R (on the application of) v HM Revenue and Customs [2017] EWCA Civ 435 (20 June 2017)

Schedule 1B to the Taxes Management Act 1970 applies to claims for share loss relief under Chapter 6 of Part 4 of the Income Tax Act 2007, so the relief must be given effect in the later year (year of the loss), not the earlier year. However, where a taxpayer performs a self-assessment in a return and HMRC does not open an enquiry within the statutory time limit, the self-assessment (including any claimed relief) stands, and HMRC cannot challenge it except by statutory amendment procedures.

Citation
[2017] EWCA Civ 435
Parties
Appellant: James Derry; Respondents: The Commissioners for Her Majesty's Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
20 June 2017
Procedural Posture
Appeal (judicial Review) / Court of Appeal Judgment on Appeal From Upper Tribunal (tax and Chancery Chamber)
Outcome
Appeal allowed on ground 2 (effect of self-assessment); ground 1 (application of Schedule 1B) dismissed.
Legal Topics
Share Loss Relief, Self Assessment Tax Returns, Claims for Relief Involving Multiple Tax Years, Judicial Review of Tax Demands, Interpretation of Schedule 1 B TMA 1970
Tax Law Administrative Law Share Loss Relief Self Assessment Tax Returns Claims for Relief Involving Multiple Tax Years Judicial Review of Tax Demands Interpretation of Schedule 1 B TMA 1970

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 11 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

James Derry

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

Appeal (judicial Review) / Court of Appeal Judgment on Appeal From Upper Tribunal (tax and Chancery Chamber)

Legal Issues

  1. 1 Does Schedule 1B to the Taxes Management Act 1970 apply to claims for share loss relief under Chapter 6 of Part 4 of the Income Tax Act 2007?
  2. 2 What is the effect of a taxpayer's self-assessment in a tax return when HMRC does not open an enquiry within the statutory time limit?

Ratio Decidendi

Schedule 1B to the Taxes Management Act 1970 applies to claims for share loss relief under Chapter 6 of Part 4 of the Income Tax Act 2007, so the relief must be given effect in the later year (year of the loss), not the earlier year. However, where a taxpayer performs a self-assessment in a return and HMRC does not open an enquiry within the statutory time limit, the self-assessment (including any claimed relief) stands, and HMRC cannot challenge it except by statutory amendment procedures.

Court Disposition

Appeal allowed on ground 2 (effect of self-assessment); ground 1 (application of Schedule 1B) dismissed.

Orders

  • Permission to appeal granted on ground 2.
  • Mr Derry's appeal allowed on ground 2: his self-assessment for 2009/10 stands as HMRC did not open an enquiry within the statutory time limit.