Derry, R (on the application of) v HM Revenue and Customs

Derry, R (on the application of) v HM Revenue and Customs

Schedule 1B to TMA 1970 applies to claims for share loss relief under Chapter 6 of Part 4 of ITA 2007, so the relief is given effect in the later year. However, where a taxpayer completes a self-assessment including the carried back relief and no enquiry is opened into the return within the statutory time limit, the self-assessment stands and HMRC cannot go behind it.

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
Judicial Review (tax) / Appeal From Upper Tribunal to Court of Appeal
Outcome
Appeal dismissed on ground 1; appeal allowed on ground 2.
Legal Topics
Share Loss Relief, Self Assessment Procedure, Judicial Review, Income Tax Act 2007, Taxes Management Act 1970
Tax Law Administrative Law Share Loss Relief Self Assessment Procedure Judicial Review Income Tax Act 2007 Taxes Management Act 1970

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Parties

James Derry

Appellant

The Commissioners for Her Majesty's Revenue and Customs

Respondents

Procedural Posture

Judicial Review (tax) / Appeal From Upper Tribunal to Court of Appeal

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 return where a claim for share loss relief is made and no enquiry is opened by HMRC within the statutory time limit?

Ratio Decidendi

Schedule 1B to TMA 1970 applies to claims for share loss relief under Chapter 6 of Part 4 of ITA 2007, so the relief is given effect in the later year. However, where a taxpayer completes a self-assessment including the carried back relief and no enquiry is opened into the return within the statutory time limit, the self-assessment stands and HMRC cannot go behind it.

Court Disposition

Appeal dismissed on ground 1; appeal allowed on ground 2.

Orders

  • Permission to appeal granted on ground 2.
  • Mr Derry's self-assessment for 2009/10 stands as no enquiry was opened within the statutory time limit.