Inadmissible documents

Offset trading losses against other income

The taxpayers were shareholders in two companies Vinexsa and Sweet Revenge which held properties in the UK and in France. They argued that as a result of a nominee agreement and a declaration of trust Vinexsa and Sweet Revenge held their respective assets as nominees for the Vinexsa shareholders. They also asserted that a French property owned by Sweet Revenge and one of two London flats owned by Vinexsa were held as trading stock so that trading losses arising from these could be offset against their other taxable income.

HMRC disagreed and the taxpayers appealed.

The First-tier Tribunal first had to decide whether the nominee agreement and the declaration of trust were admissible as evidence. The tribunal noted that both were liable to £5 fixed stamp duty but neither had been presented. Until they were...