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 appellant failed to demonstrate that the reasonable expectation of profit test under s68(3)(b) ITA 2007 was satisfied. Losses were made in each of the previous five years, and no evidence of specialised activities or cessation of trade was provided. Therefore, sideways relief for farming losses was not allowable after 2008-09, and HMRC's closure notice and discovery assessments were validly issued.

Citation
[2016] UKFTT 176 (TC)
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 Tribunal Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Corporation Tax, Self Assessment, Farming Loss Relief, Discovery Assessments
Tax Law Income Tax Corporation Tax Self Assessment Farming Loss Relief 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 Tribunal Decision

Legal Issues

  1. 1 Whether closure notice and discovery assessments for tax years 2009-10, 2010-11, 2011-12, and 2012-13 were validly issued
  2. 2 Whether farming losses can 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 appellant failed to demonstrate that the reasonable expectation of profit test under s68(3)(b) ITA 2007 was satisfied. Losses were made in each of the previous five years, and no evidence of specialised activities or cessation of trade was provided. Therefore, sideways relief for farming losses was not allowable after 2008-09, and HMRC's closure notice and discovery assessments were validly issued.

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 amounts assessed calculated correctly