Wrong enquiry

Claim for loss relief on disposal of shares

In 2009-10 the taxpayer had taxable income of £519 625. In his return for the year he claimed relief under ITA 2007 Pt 4 ch 6 (s 131 et seq) for a capital loss of £414 500. In October 2011 HMRC repaid £70 497.90 to the taxpayer. But it later decided the taxpayer was not entitled to carry it back (TMA 1970 s 42 and Sch 1B) and issued a demand for £95 546.36. It opened enquiries but not under TMA 1970 s 9A

The taxpayer sought judicial review. The Upper Tribunal dismissed the claim so the taxpayer appealed.

Lord Justice Henderson in the Court of Appeal noted that the taxpayer had included the loss relief claim in his 2009-10 tax return and his accountants had calculated the repayment due. If HMRC had been unhappy with...