Separate businesses

The taxpayer operated an optician’s franchise until 3 April 2009 after which he became a self-employed locum dispensing-optician undertaking contract work.

He wished to carry forward losses from his franchise business – under ITA 2007 s 83 – and set them against 2009/10 income on the basis his self-employment was a continuation of his trade as a franchise holder.

HMRC refused saying the taxpayer’s new business was different from his old one and the gap between ceasing one concern and beginning another indicated the two were separate.

The taxpayer appealed.

The First-tier Tribunal noted that almost two months passed between the end of the taxpayer’s franchise and the start of his self-employment. This along with the difference in the kind of people seeking his services and the fact he did not work from a fixed location indicated that his locum work was...