A taxpayer’s share loss relief claim was subject to the provisions of TMA 1970, Sch 1B, para 2 dealing with loss relief claims involving two or more years, but HMRC should have challenged the taxpayer’s resulting self-assessment for the earlier tax year by amending the return for that tax year or by opening an enquiry into it.
The appellant purchased shares in a company in March 2010 for £500,000, which he claimed was a qualifying company for the purpose of share loss relief (under ITA 2007, Pt 4, Ch 6). The shares were sold in November 2010 for £85,500, resulting in a capital loss of £414,500.
In January 2011, the appellant submitted his tax return for 2009/10. The appellant claimed that he was entitled to relief for capital losses realised in 2010/11 against his taxable income in the tax year 2009/10. The loss relief would result in his income tax liability for 2009/10 being reduced&
