Wilders v Revenue and Customs (INCOME TAX - share loss relief - whether circumstances of the investment gave rise to a loss within sections 131, 137 Income Tax Act 2007 (ITA) and section 17 Taxation of Chargeable Gains Act 1992 (TCGA) - was relief denied by and of the provisions of general or targeted anti avoidance provisions (sections 16A, 30 or 38 TCGA)) [2026] UKFTT 517 (TC) (01 April 2026)

Wilders v Revenue and Customs (INCOME TAX - share loss relief - whether circumstances of the investment gave rise to a loss within sections 131, 137 Income Tax Act 2007 (ITA) and section 17 Taxation of Chargeable Gains Act 1992 (TCGA) - was relief denied by and of the provisions of general or targeted anti avoidance provisions (sections 16A, 30 or 38 TCGA)) [2026] UKFTT 517 (TC) (01 April 2026)

The Tribunal found that although the investment resulted in a genuine loss and the shares became worthless, the arrangements fell within the scope of anti-avoidance provisions under either section 38 or section 16A TCGA. The structure, particularly the loan element and the ability to novate, meant that the loss was not incurred wholly and exclusively for the acquisition of shares, and one of the main purposes was to secure a tax advantage. Relief was therefore denied.

Citation
[2026] UKFTT 517
Parties
Appellant: Simon Wilders; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
01 April 2026
Procedural Posture
Income Tax Appeal / First Tier Tribunal (tax Chamber) Substantive Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Share Loss Relief, Anti Avoidance, Capital Gains Tax, Qualifying Trade
Tax Law Income Tax Share Loss Relief Anti Avoidance Capital Gains Tax Qualifying Trade

Case Brief

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Parties

Simon Wilders

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

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

Legal Issues

  1. 1 Whether the investment loss qualifies for share loss relief under sections 131, 137 Income Tax Act 2007 and section 17 Taxation of Chargeable Gains Act 1992
  2. 2 Whether relief is denied by anti-avoidance provisions (sections 16A, 30 or 38 TCGA)
  3. 3 Whether the shares were acquired at market value and by arm's length transaction

Ratio Decidendi

The Tribunal found that although the investment resulted in a genuine loss and the shares became worthless, the arrangements fell within the scope of anti-avoidance provisions under either section 38 or section 16A TCGA. The structure, particularly the loan element and the ability to novate, meant that the loss was not incurred wholly and exclusively for the acquisition of shares, and one of the main purposes was to secure a tax advantage. Relief was therefore denied.

Court Disposition

Appeal dismissed

Orders

  • Share loss relief claim in the sum of £99,360 is disallowed
  • Repayment claim of £48,117.40 for the tax year ended April 2011 is refused