HMRC could resile from the view it expressed in previously published guidance as to the availability of capital losses (following Mansworth v Jelley) in the circumstances of the taxpayer’s case. 

In 1998 and 1999, the respondent exercised share options and sold the shares shortly thereafter. He reported the transactions in his tax returns for 1998/99 and 1999/00. Subsequently, the respondent took advantage of an apparent change in the permitted treatment of those transactions (following Mansworth v Jelley [2003] STC 53), which enabled him to claim additional losses following guidance by HM Revenue and Customs (HMRC) to that effect in 2003. This gave rise to a legitimate expectation that HMRC would be bound by that guidance. 

However, HMRC opened enquiries into the respondent's tax returns in June 2003 and indicated that it did not agree with the additional losses. In 2009, following legal advice, HMRC issued