Degorce v Revenue & Customs [2013] UKFTT 178 (TC) (04 March 2013)

Degorce v Revenue & Customs [2013] UKFTT 178 (TC) (04 March 2013)

The Tribunal found that Mr Degorce was not carrying on a trade within the meaning of the relevant tax legislation. The composite transaction was not of a trading nature, was not carried on on a commercial basis, nor with a reasonable expectation of profit. The losses claimed did not arise from trading activity and were not allowable for tax purposes.

Citation
[2013] UKFTT 178 (TC)
Parties
Appellant: Patrick Degorce; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
04 March 2013
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Decision
Outcome
Appeal dismissed
Legal Topics
Income Tax, Loss Relief, Trade Definition, GAAP Compliance, Wholly and Exclusively Rule
Tax Law Income Tax Loss Relief Trade Definition GAAP Compliance Wholly and Exclusively Rule

Case Brief

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Parties

Patrick Degorce

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the appellant was carrying on a trade
  2. 2 Whether the trade was carried on on a commercial basis
  3. 3 Whether the trade was carried on with a view to the realisation or reasonable expectation of profit

Ratio Decidendi

The Tribunal found that Mr Degorce was not carrying on a trade within the meaning of the relevant tax legislation. The composite transaction was not of a trading nature, was not carried on on a commercial basis, nor with a reasonable expectation of profit. The losses claimed did not arise from trading activity and were not allowable for tax purposes.

Court Disposition

Appeal dismissed

Orders

  • Loss relief claim disallowed
  • No trading losses allowable for tax purposes