Upper Tribunal Tax and Chancery Chamber

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

Fecha: 08-Abr-2025

This subsection explains how the deductions are to be made

(1)

This subsection explains how the deductions are to be made.

The amount of the loss to be deducted at any step is limited in accordance with sections 24A and 25(4) and (5).

Step 1

Deduct the loss in calculating the individual's net income for the specified tax year.

Step 2

This step applies only if the claim is made in relation to both tax years.

Deduct the part of the loss not deducted at Step 1 in calculating the individual's net income for the other tax year.

(2)

Subsection (1) is subject to sections 136(5) and 147 (which set limits on the amounts of share loss relief that may be obtained in particular cases).

Heading
INTRODUCTION
THE FTT DECISION
THE GROUNDS OF APPEAL TO THE UPPER TRIBUNAL
THE HEARING
FACTUAL BACKGROUND
FIRST SHARE LOSS RELIEF ISSUE The FTT identified the first issue in the following terms at [48(1)]
The Law
Schedule 1A to this Act shall apply as respects any claim or election which—
Section 42(2) of this Act shall not apply in relation to the claim The claim shall relate to the later year
the claim does not have to be made in the return (paragraph 2(2))
for both tax years
Otherwise the claim must specify either the year of the loss or the previous tax year
This subsection explains how the deductions are to be made
If an individual—
Case law
Section 42(2) of this Act shall not apply in relation to the claim The claim shall relate to the later year
Derry SC
There were two issues before the Court
Outline of the Appellant’s case
Discussion and Analysis
Prior to the ITA all loss relief claims under ICTA were to be made or treated in a similar way – Schedule 1B TMA applied There is no doubt that Schedule 1B TMA applied to trade loss relief claims made under s.380 ICTA
The ITA made a limited but material change in the law from ICTA on share loss relief claims
Appellant’s other arguments considered
Summary
Conclusion
SECOND SHARE LOSS RELIEF ISSUE
The Law
An officer of the Board may enquire into— a claim made by any person, or
Cotter
Derry CA
Derry SC
HMRC’s case in outline
The present case should have been distinguished on its facts from Derry CA The Appellant’s case in outline
Discussion and Analysis
Derry CA not binding: the ordinary rules of precedent
Distinguishing Derry CA
Remaking
THE CLOSURE NOTICE ISSUE
The Law
state that in the officer's opinion no amendment of the claim is required, or
A closure notice takes effect when it is issued…”
Case law
Outline of the Appellant’s case
Discussion and Analysis
Conclusions