Carey v Revenue & Customs [2015] UKFTT 466 (TC) (14 September 2015)

Carey v Revenue & Customs [2015] UKFTT 466 (TC) (14 September 2015)

The appellant was ordinarily resident in the UK during part of the 2011-12 tax year because, despite his move to Rwanda, he retained significant links to the UK and had not made a distinct break from his settled purpose in the UK until December 2011 when he severed his employment and economic ties. Therefore, the...

Source-derived case information.

Citation
[2015] UKFTT 466 (TC)
Parties
Appellant: Mr Mark Carey; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
14 September 2015
Procedural Posture
Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal allowed
Legal Topics
Income Tax, Corporation Tax, Capital Gains Tax, Residence and Ordinary Residence, Share Loss Relief, Allowable Losses
Tax Law Income Tax Corporation Tax Capital Gains Tax Residence and Ordinary Residence Share Loss Relief Allowable Losses

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Parties

Mr Mark Carey

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal (tax Chamber) Decision

Legal Issues

  1. 1 Whether the appellant was entitled to claim relief for a capital loss by offset against taxable employment income under sections 131 and 132 of the Income Tax Act 2007 for the 2011-12 tax year
  2. 2 Whether the loss was an allowable loss for capital gains tax purposes, specifically whether the appellant was ordinarily resident in the UK during any part of the relevant tax year

Ratio Decidendi

The appellant was ordinarily resident in the UK during part of the 2011-12 tax year because, despite his move to Rwanda, he retained significant links to the UK and had not made a distinct break from his settled purpose in the UK until December 2011 when he severed his employment and economic ties. Therefore, the capital loss realised on the sale of shares was an allowable loss for capital gains tax purposes, entitling him to relief under sections 131 and 132 ITA 2007.

Court Disposition

Appeal allowed

Orders

  • The appellant is entitled to claim relief for the capital loss of £145,872 under sections 131 and 132 of the Income Tax Act 2007 for the 2011-12 tax year.