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

The FTT identified the first issue in the following terms at [48(1)]:

The FTT’s answer was “no”. It concluded at [61]-[62] that paragraph 2(3), Schedule 1B TMA applied such that the claim was to be treated as relating to the tax year 06-07. The reasoning in Derry SC that Schedule 1B did not apply to ITA, did not apply to ICTA:

“61.

The wording of section 574 ICTA and section 380 ICTA in the form that they were in immediately before ITA is very similar once the wording that relates to the particular form of loss is removed. Whilst we acknowledge that there are some material differences in the nature of share loss relief as compared to the other forms of loss relief – for example, in the manner in which the provisions of section 574 ICTA isolate the loss arising from the relevant disposal from the general computation of gains and losses for the year – we have not been directed to any provision in the law before the introduction of ITA which would suggest that there was a material difference in the manner in which share loss relief and the other forms of loss relief were to be claimed and enquired into. We can only conclude – consistent with the implication from Lord Carnwath’s judgment in Derry SC – that there was no material difference in the law applicable to the manner in which share loss relief and the other forms of loss relief prior to ITA (i.e. that Schedule 1B TMA applied) and that ITA made a material change to the law in that respect, but only in relation to claims for share loss relief.

62.

On the first issue, we therefore agree with HMRC that Mr Murphy was not entitled to claim share loss relief “in” his return for the tax year 2005/6. Schedule 1B TMA applied and so the loss related to the tax year [2006/7].”