Carry-back loss claims

Application to strike out claims

The taxpayers brought claims for declarations requiring HMRC to give effect to claims to carry back losses. The claims had been made in self-assessment tax returns or in letters to HMRC which the taxpayers said could be challenged only after an enquiry under TMA 1970 Sch 1A. HMRC was now out of time to open an enquiry so the claims should be allowed.

HMRC applied to strike out all the claims citing the Supreme Court’s decision in De Silva v CRC [2017] STC 2483. In that case the court had held that TMA 1970 s 9A gave HMRC the power to enquire into a taxpayer’s carry-back claims in their year 2 returns. Further HMRC did not have to start an enquiry under Sch 1A to challenge a taxpayer’s claims.

Mr Justice Warren in the High Court said there were five categories in this...