Beacon v Revenue and Customs (INCOME TAX/CORPORATION TAX : Losses) [2018] UKFTT 104 (TC) (27 February 2018)

Beacon v Revenue and Customs (INCOME TAX/CORPORATION TAX : Losses) [2018] UKFTT 104 (TC) (27 February 2018)

The appellant carried on the Hospitality at Home trade at the Villa during the relevant years on a commercial basis and with a view to the realisation of profits, as evidenced by a business plan, marketing, increasing turnover, and operation in accordance with ordinary prudent business principles, despite adverse economic conditions. Therefore, the requirements of s 66 ITA 2007 were satisfied and loss relief is available.

Citation
[2018] UKFTT 104
Parties
Appellant: Jonathan Beacon; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
27 February 2018
Procedural Posture
Appeal (first Tier Tribunal Tax) / Final Decision After Hearing
Outcome
Appeal allowed
Legal Topics
Income Tax, Trading Losses, Commerciality of Trade, Loss Relief, Section 66 Income Tax Act 2007
Tax Law Income Tax Trading Losses Commerciality of Trade Loss Relief Section 66 Income Tax Act 2007

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Parties

Jonathan Beacon

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal (first Tier Tribunal Tax) / Final Decision After Hearing

Legal Issues

  1. 1 Whether the appellant's trade at the Villa was carried on a commercial basis and with a view to the realisation of profits under s 66 ITA 2007
  2. 2 Whether loss relief should be allowed for the tax years 2010-11 and 2011-12

Ratio Decidendi

The appellant carried on the Hospitality at Home trade at the Villa during the relevant years on a commercial basis and with a view to the realisation of profits, as evidenced by a business plan, marketing, increasing turnover, and operation in accordance with ordinary prudent business principles, despite adverse economic conditions. Therefore, the requirements of s 66 ITA 2007 were satisfied and loss relief is available.

Court Disposition

Appeal allowed

Orders

  • Loss relief for 2010-11 and 2011-12 to be permitted under s 66 ITA 2007