Grinyer v Revenue & Customs (INCOME TAX - interaction of TMA and ITA) [2020] UKFTT 64 (TC) (03 February 2020)

Grinyer v Revenue & Customs (INCOME TAX - interaction of TMA and ITA) [2020] UKFTT 64 (TC) (03 February 2020)

HMRC is entitled to refuse a claim for loss relief and carry forward of losses in an individual's tax return by way of an enquiry into that return, even if no enquiry was opened into the partnership tax return. The statutory framework allows HMRC to enquire into and amend any claim in the individual's return, including the commerciality of the trade, and the entitlement to relief under ITA 2007. The appeal is therefore dismissed.

Citation
[2020] UKFTT 64 (TC)
Parties
Appellant: Christopher J Grinyer; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
03 February 2020
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Decision on Appeal Against Closure Notice
Outcome
Appeal dismissed
Legal Topics
Income Tax, Self Assessment, HMRC Enquiry Powers, Partnership Taxation, Loss Relief, Procedural Law
Tax Law Income Tax Self Assessment HMRC Enquiry Powers Partnership Taxation Loss Relief Procedural Law

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Parties

Christopher J Grinyer

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Decision on Appeal Against Closure Notice

Legal Issues

  1. 1 Whether HMRC can refuse a claim for loss relief and carry forward of losses in an individual's tax return without opening an enquiry into the partnership tax return (PTR)
  2. 2 Scope of HMRC's enquiry powers under TMA 1970 and ITA 2007

Ratio Decidendi

HMRC is entitled to refuse a claim for loss relief and carry forward of losses in an individual's tax return by way of an enquiry into that return, even if no enquiry was opened into the partnership tax return. The statutory framework allows HMRC to enquire into and amend any claim in the individual's return, including the commerciality of the trade, and the entitlement to relief under ITA 2007. The appeal is therefore dismissed.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.