Henderson v Revenue and Customs (INCOME TAX - returns from share transactions - whether trading activity) [2023] UKFTT 281 (TC) (08 March 2023)

Henderson v Revenue and Customs (INCOME TAX - returns from share transactions - whether trading activity) [2023] UKFTT 281 (TC) (08 March 2023)

Mr Henderson's share transactions did not constitute a trade for income tax purposes. The activity was not sufficiently frequent, organised, or commercial, and was more consistent with investment management than trading. The presumption against trading in speculative share dealings was not displaced by the facts.

Citation
[2023] UKFTT 281 (TC)
Parties
Appellant: Nicholas Henderson; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
08 March 2023
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Trading Activity, Loss Relief, Share Transactions
Tax Law Income Tax Trading Activity Loss Relief Share Transactions

Case Brief

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Parties

Nicholas Henderson

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / First Tier Tribunal (tax Chamber) Judgment

Legal Issues

  1. 1 Whether the appellant's share transactions constituted a trade for income tax purposes
  2. 2 Whether the activity was carried on commercially with a view to profit

Ratio Decidendi

Mr Henderson's share transactions did not constitute a trade for income tax purposes. The activity was not sufficiently frequent, organised, or commercial, and was more consistent with investment management than trading. The presumption against trading in speculative share dealings was not displaced by the facts.

Court Disposition

Appeal dismissed

Orders

  • No trading activity found; loss relief claims disallowed