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Sun Life Assurance Company of Canada (UK) Ltd v CRC, Court of Appeal
The taxpayer company’s business included basic life and general annuity business. It claimed it was required to carry forward and set off unused losses from previous years when computing its Schedule D Case I profits.
HMRC disagreed. The issue was whether, up to 31 December 2002, FA 1989, s 89(7) permitted past years’ losses to be carried forward for the purpose of computing profits.
The judges in the Court of Appeal ruled that the company was entitled to carry forward unused losses from previous years. They did not accept HMRC’s argument that this entitlement was restricted by subsequent legislation in FA 2003, s 170 and Sch 33.
The taxpayer’s appeal was allowed and HMRC’s contingent appeal was dismissed.
