TC09615 - [2025] UKFTT 01016 (TC)

Mr Tinkler’s grounds of appeal refer only to HMRC’s primary case, and not to the Wholly and Exclusively Issue, presumably because he did not consider it necessary to respond to that alternative case.

Mr Tinkler’s grounds also do not refer to the Section 66 Issue or the GAAP Issue. That is unsurprising, as neither is not explicitly identified in the Closure Notices or the covering letters. In relation to the GAAP Issue, Mr Waldegrave referred to HMRC’s letter of 20 November 2019, but that letter does not say that HMRC disagree with the valuations used in his accounts or tax returns; instead it confirms that HMRC will use the lower of cost or NRV when calculating the profit or loss of the Breeding Activity.

Mr Gordon submitted hat if he were to be wrong on the Section 66 Issue and/or the GAAP Issue, it would be in the interests of justice to give Mr Tinkler permission to amend his grounds of appeal; he also asked for permission to amend those grounds to include the Wholly and Exclusively Issue. Mr Waldegrave did not put forward any objection, and I find that it is in the interests of justice for allow Mr Tinkler to amend his appeal grounds to include all three Issues.