TC09615 - [2025] UKFTT 01016 (TC)

Mr Tinkler completed his self-assessment (“SA”) tax returns for 2010-11 to 2016-17 (“the relevant years”) on the basis that he had carried on a trade (“the Trade” or “the Combined Trade”) which consisted both of breeding horses (“the Breeding Activities”) and training/ racing horses (“the Racing Activities”).

In his SA returns for all but one of the relevant years, Mr Tinkler offset losses arising from the Trade against his other income and carried forward any balance. In one of the years, the Trade made a profit.

HM Revenue & Customs (“HMRC”) opened enquiries into Mr Tinkler’s SA returns, and on 16 August 2022, issued him with closure notices (“the Closure Notices”) and related amendments for each year. The total amount of extra tax charged in relation to the Trade was approximately £2.7m.

Mr Tinkler appealed to HMRC on the basis that the Trade had been treated correctly in his SA returns. The Closure Notices were upheld on statutory review, and Mr Tinkler filed a Notice of Appeal at the Tribunal. On 20 January 2025, HMRC filed and served a Statement of Case (“SoC”) drafted by Mr Waldegrave.

On 28 February 2025, on behalf of Mr Tinkler, Mr Gordon applied for the Tribunal to determine various matters in order to clarify the scope of the appeal at the Tribunal (“the Application”). Mr Waldegrave responded on 11 April 2025 on behalf of HMRC (“the Response”), and Mr Gordon replied on 14 April 2025 (“the Reply”).