Unfair treatment

The taxpayer was granted options in a company unapproved employee share option scheme as part of his employment remuneration. The Revenue issued closure notices rejecting the taxpayer’s claim for capital losses.

The taxpayer sought judicial review.

He argued first that he had a legitimate expectation that his loss claims would be considered in line with the Revenue’s published 2003 guidance  Tax treatment of options following Mansworth v Jelley. Second the Revenue’s refusal to recognise the loss claims and the decision to reverse the 2003 guidance with the publication of Revenue and Customs Brief 30/09 amounted to an abuse of power. Third the Revenue’s refusal to recognise the claims had been a breach of the principle that the department should treat taxpayers fairly and consistently. The fact that other taxpayers in a similar position had been accorded treatment under the 2003 guidance meant he had not been treated fairly.

Mrs Justice Whipple...