England and Wales Case Law

Hector Lester v The Commissioners for HMRC

The tribunal found that a valid enquiry notice was given by HMRC's letter of 22 January 2021 to Grant Thornton, who were authorised agents for Mr Lester, and a closure notice was subsequently issued. Mr Lester validly made carry back claims for losses under s 72 ITA within the extended time limit provided by s 43(2) and s 43C(2) TMA, and any necessary amendment to prior carry forward claims was impliedly effected by the claims letter. The tribunal had jurisdiction to hear the appeal and the claims were validly made.

Source excerpt

• Income tax
• Loss relief
• Time limits
• Carry back claims
• Carry forward claims
• Agency authority

Read case analysis

Timothy Watts v The Commissioners for HMRC

The Court of Appeal dismissed Mr Watts’s appeal over gilt strip loss relief, holding that the amount payable on transfer included both option-related payments in the composite scheme.

• Income tax
• Tax avoidance
• Statutory interpretation
• Loss relief
• Gilt strips
• Tax-law

Read case analysis

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.

Source excerpt

• Income tax
• Self-assessment
• Closure notices
• Loss relief
• Gaap compliance
• Commerciality of trade

Read case analysis

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.

Source excerpt

• Income tax
• Loss relief
• Commerciality test
• Discovery assessment
• Closure notices

Read case analysis

Accelerate Corporation Limited v The Commissioners for HMRC

The Tribunal found that HMRC made a valid discovery of an insufficiency of tax due to carelessness by or on behalf of Accelerate, issued the assessment within the statutory time limit, and applied the correct accounting treatment. There was no evidence to support that the debt arising from the IOL invoices should be treated as an expense in an earlier accounting period than that recognised by HMRC.

Source excerpt

• Corporation tax
• Discovery assessment
• Bad debt relief
• Accounting standards
• Loss relief

Read case analysis

The Commissioners for HMRC v Timothy Bunting

The Upper Tribunal held that s253 TCGA loss relief was unavailable after a loan was voluntarily released in exchange for shares, because it was no longer outstanding.

• Capital gains tax
• Loss relief
• Statutory interpretation
• Loan capitalisation
• Capital-gains-tax
• Loss-relief

Read case analysis

Timothy Bunting v The Commissioners for HMRC

A claim for capital loss relief under section 253 TCGA 1992 can be made where a qualifying loan has been capitalised for shares of nil value, as the amount remains outstanding and irrecoverable. The statutory language does not require the loan to subsist or be enforceable at the time of claim, provided the debt is unpaid and irrecoverable. Satisfaction by worthless shares does not constitute payment or valuable consideration.

Source excerpt

• Capital gains tax
• Loss relief
• Interpretation of section 253 tcga 1992
• Loan capitalisation

Read case analysis

Philip Leslie Jinks v The Commissioners for HMRC

The Tribunal has no jurisdiction to decide any of the appellant's grounds of appeal, as they either fall outside its statutory remit, are out of time, or do not arise from appealable decisions. All grounds are struck out and the appeal is dismissed in its entirety.

Source excerpt

• Jurisdiction
• Overpayment relief
• Data protection
• Appealable decisions
• Loss relief

Read case analysis

Furlong Services Ltd v The Commissioners for HMRC

HMRC discharged the burden of showing a reason to suspect underassessment for periods ending 31 March 2017, 31 March 2018, and 30 September 2019, and that the information and documents requested were reasonably required to check Furlong’s tax position. Items 1, 4, and 7 were confirmed as statutory records and not appealable; Items 2 and 5 were varied to exclude periods where no reason to suspect was established and to comply with statutory time limits.

Source excerpt

• Information notice
• Statutory records
• Reason to suspect
• Loss relief
• Corporation tax
• Burden of proof

Read case analysis

Anthony Outram & Anor v The Commissioners for HMRC

The Upper Tribunal held that the First-tier Tribunal applied an objective approach to deliberate inaccuracy in tax returns, set aside the decision, and remitted the case.

• Income tax
• Discovery assessments
• Deliberate inaccuracy
• Loss relief
• Procedural review
• Income-tax

Read case analysis