Ames v Revenue & Customs (INCOME TAX/CORPORATION TAX : Exemptions and reliefs) [2015] UKFTT 337 (TC) (07 July 2015)

Ames v Revenue & Customs (INCOME TAX/CORPORATION TAX : Exemptions and reliefs) [2015] UKFTT 337 (TC) (07 July 2015)

The CGT exemption under the EIS is only available if an individual's income tax liability has been reduced following a claim for EIS relief. As Mr Ames did not make a claim and had no reduction in income tax, the exemption does not apply. The Tribunal cannot allow a late claim or compel HMRC to exercise discretion. The legislation is clear, prescriptive, and does not breach human rights protections.

Citation
[2015] UKFTT 337 (TC)
Parties
Appellant: Robert Ames; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
07 July 2015
Procedural Posture
Appeal (first Tier Tribunal Tax) / Final Judgment
Outcome
Appeal dismissed
Legal Topics
Capital Gains Tax, Enterprise Investment Scheme, Income Tax Relief, Statutory Interpretation, Human Rights Act, Late Claims, Care and Management Powers
Tax Law Capital Gains Tax Enterprise Investment Scheme Income Tax Relief Statutory Interpretation Human Rights Act Late Claims Care and Management Powers

Case Brief

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Parties

Robert Ames

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Appeal (first Tier Tribunal Tax) / Final Judgment

Legal Issues

  1. 1 Whether CGT exemption under EIS is available if EIS income tax relief was not claimed due to income below personal allowance
  2. 2 Whether the legislation can be interpreted purposively to allow exemption
  3. 3 Whether the Tribunal can allow a late claim for EIS relief

Ratio Decidendi

The CGT exemption under the EIS is only available if an individual's income tax liability has been reduced following a claim for EIS relief. As Mr Ames did not make a claim and had no reduction in income tax, the exemption does not apply. The Tribunal cannot allow a late claim or compel HMRC to exercise discretion. The legislation is clear, prescriptive, and does not breach human rights protections.

Court Disposition

Appeal dismissed

Orders

  • HMRC's amendment to Mr Ames' self-assessment return is upheld.