Late claim to carry back losses of limited liability partnership

The taxpayer submitted his tax returns late because of delays receiving information from third parties. One year was in relation to partnership information that would allow him to claim a loss. HMRC imposed penalties and rejected the loss claim on the basis it was late.

The taxpayer appealed.

The First-tier Tribunal said the taxpayer had done what he could to keep HMRC informed and agreed he had a reasonable excuse. The judge cancelled some of the penalties.

On the loss claim the judge said the tribunal did not have jurisdiction to require HMRC allow a late claim. But given the taxpayer’s previous letters to HMRC and its poor handling of the case the judge hoped the Revenue would reconsider. In essence the taxpayer appeared to have made an earlier claim between February 2009 and January 2010. It was made in a letter rather than the 2007-08 return...