William Andrew Tinkler v The Commissioners For HMRC

William Andrew Tinkler v The Commissioners For HMRC

The Tribunal has jurisdiction to consider the Section 66 Issue and GAAP Issue for all relevant years except 2013-14, as the closure notices' wording that 'trade loss has been overstated' encompasses these grounds. For 2013-14, only the GAAP Issue is within scope, as the closure notice refers to overstated profit, not losses.

Parties
Appellant: William Andrew Tinkler; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
26 August 2025
Procedural Posture
Income Tax Appeal / Preliminary Ruling on Scope of Closure Notices and Permissible Grounds
Outcome
Application partially allowed; Tribunal has jurisdiction to consider Section 66 and GAAP Issues (except Section 66 for 2013-14). Permission granted to appellant to amend grounds of appeal.
Legal Topics
Income Tax, Self Assessment, Closure Notices, Loss Relief, GAAP Compliance, Commerciality of Trade
Tax Law Income Tax Self Assessment Closure Notices Loss Relief GAAP Compliance Commerciality of Trade

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Parties

William Andrew Tinkler

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Preliminary Ruling on Scope of Closure Notices and Permissible Grounds

Legal Issues

  1. 1 Whether HMRC can raise Section 66 Issue (commerciality restriction on loss relief) and GAAP Issue (stock valuation compliance) before the Tribunal based on scope of closure notices
  2. 2 Whether Tribunal has jurisdiction to consider these issues
  3. 3 Interpretation of closure notices and amendments

Ratio Decidendi

The Tribunal has jurisdiction to consider the Section 66 Issue and GAAP Issue for all relevant years except 2013-14, as the closure notices' wording that 'trade loss has been overstated' encompasses these grounds. For 2013-14, only the GAAP Issue is within scope, as the closure notice refers to overstated profit, not losses.

Court Disposition

Application partially allowed; Tribunal has jurisdiction to consider Section 66 and GAAP Issues (except Section 66 for 2013-14). Permission granted to appellant to amend grounds of appeal.

Orders

  • HMRC to inform appellant and Tribunal within 28 days whether stock values require amendment due to GAAP misapplication and provide revised figures if so.
  • Appellant to file and serve amended grounds of appeal within 28 days of HMRC's compliance, including Wholly and Exclusively Issue, Section 66 Issue, GAAP Issue (if live), and/or 2013-14 Closure Notice.