UT (Tax & Chancery) UT-2024-000113 - [2025] UKUT 00165 (TCC)

In conclusion, there was no error of law in the FTT finding that i) prior to the introduction of ITA in 2007 all ICTA share loss reliefs were to be claimed in the same way with Schedule 1B TMA applying; ii) after its introduction, there was a material change in law and Schedule 1B TMA applied to employment and trade loss relief claims but not to share loss relief claims. The FTT was right to decide that the judgment in Derry SC does not support the contention that Schedule 1B TMA does not apply to share loss relief claims under s.574 ICTA. For the reasons set out above, the pre-ITA position was that no express reference to Schedule 1B in the statute providing for any loss relief to be carried back was required for it to apply to such a claim. In relation to s.574(1) ICTA, Schedule 1B TMA is invoked because the claim by its nature relates to two years of assessment (as in s.42 TMA, Knibbs and De Silva), not because there is any specific or express statutory signpost to Schedule 1B TMA. Further, the FTT was right to find that it was bound by De Silva (and Knibbs at [67] to like effect) and that the Appellant’s claim in 05-06 should be treated as relating to (and made in the return for) the tax year 06-07.

A claim for relief pursuant to s.574 ICTA is a claim to which Schedule 1B TMA applies. The claim therefore “relates to the later year”, and the FTT made no error in relation to the First Share Loss Relief Issue. The Appellant’s appeal on this ground is dismissed.