Alan Ashcroft v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2016] UKFTT 176 (TC) (09 March 2016)

Alan Ashcroft v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2016] UKFTT 176 (TC) (09 March 2016)

The closure notice and discovery assessments were validly issued as the appellant failed to provide evidence that the reasonable expectation of profit test under s68 ITA 2007 was satisfied. Losses made in each of the previous five years triggered the restriction under s67(2) ITA 2007, preventing sideways relief. The appellant did not discharge the onus to show the amendments and assessments were incorrect.

Citation
[2016] UKFTT 176
Parties
Appellant: Alan Ashcroft; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
09 March 2016
Procedural Posture
Income Tax Appeal / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Trade Loss Relief, Farming Losses, Discovery Assessments
Tax Law Income Tax Corporation Tax Self Assessment Trade Loss Relief Farming Losses Discovery Assessments

Case Brief

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Parties

Alan Ashcroft

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax Appeal / Final Judgment

Legal Issues

  1. 1 Whether closure notices and discovery assessments for tax years 2009-10, 2010-11, 2011-12, and 2012-13 were validly issued
  2. 2 Whether farming losses could be set off sideways against other income under s67(2) ITA 2007
  3. 3 Whether the reasonable expectation of profit test under s68 ITA 2007 was satisfied

Ratio Decidendi

The closure notice and discovery assessments were validly issued as the appellant failed to provide evidence that the reasonable expectation of profit test under s68 ITA 2007 was satisfied. Losses made in each of the previous five years triggered the restriction under s67(2) ITA 2007, preventing sideways relief. The appellant did not discharge the onus to show the amendments and assessments were incorrect.

Court Disposition

Appeal dismissed

Orders

  • Closure notice and amendment for 2011-12 and discovery assessments for 2009-10, 2010-11, and 2012-13 confirmed
  • Losses restricted and assessed amounts upheld