Posthumous claims accepted

The taxpayers were the executors of Jeffrey Leadley who died in May 2010. He had invested £50 000 in two companies and made a loan of £334 784 to another.

HMRC accepted the shareholdings had become of negligible value by 5 April 2010 and that the loan in effect ceased to exist as an asset on 3 November 2009 because the borrower company had gone into liquidation.

The executors submitted claims for relief for the loss on the shares under ITA 2007 s 131 and TCGA 1992 s 24. They claimed relief in respect of the loan under TCGA 1992 s 253.

HMRC refused on the basis the claims had to be made by the person who owned the shares and made the loan.

The First-tier Tribunal applied a purposive interpretation of ITA 2007 s 131 and TCGA 1992 s 24 saying ...