Upper Tribunal Tax and Chancery Chamber

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

Fecha: 08-Abr-2025

If an individual—

(3)

If an individual—

(a)

makes a claim for share loss relief against income (“the first claim”) in relation to the year of the loss, and

(b)

makes a separate claim for share loss relief against income in respect of a loss made in the following tax year in relation to the same tax year as the first claim, priority is to be given to making deductions under the first claim.

(4)

Any share loss relief claimed in respect of any income has priority over any relief claimed in respect of that income under section 64 (deduction of losses from general income) or 72 (early trade losses relief).

(5)

A claim for share loss relief does not affect any claim for a deduction under TCGA 1992 for so much of the allowable loss as is not deducted under subsection (1).”

29.

Again, the reference in s.133(1) to “net income” takes the reader back to s.23 ITA where that concept is defined and also makes reference to the limits on the amount of loss to be deducted by virtue of ss.24A and 25.

30.

The provisions relating to the other forms of loss relief in ss.380 and 381 ICTA were also repealed and rewritten as chapter 2 Part 4 ITA, ss. 60-101 – in relation to losses from a trade, profession or vocation (“trade loss relief”) - and chapter 5 Part 4 ITA, ss.128-130 - in relation to losses from an employment (“employment loss relief”).

31.

In contrast to Chapter 6 ITA (ss.131-133 above) on share loss relief which makes no mention of Schedule 1B TMA, both subsections 60(2) and 128(7) ITA specifically and expressly make these types of relief claims subject to the application of paragraph 2, Schedule 1B TMA:

“This Chapter is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving two or more years).”