UT/2024/61 - [2025] UKUT 00096 (TCC)

This appeal concerns the interpretation of s253(3) Taxation of Chargeable Gains Act 1992 (“TCGA 1992”). In summary, s253(3) provides that a taxpayer who has made a loan to a trader may claim an allowable loss if the outstanding principal of the loan has become irrecoverable, and certain other requirements have been met.

The short issue in this appeal is whether a claim can be made under s253(3) in circumstances where a loan was released in consideration for the issue of ordinary shares prior to the claim being made.

References in this decision to sections, are to sections in the TCGA 1992, unless stated otherwise.

Mr Bunting was represented by Mr Chacko, and HMRC were represented by Mr Windle. Although greatly assisted by their detailed and helpful submissions, both written and oral, we have not found it necessary to refer to each and every argument advanced or all of the authorities cited in reaching our decision.