Summary
A taxpayer’s share loss relief claim was subject to the provisions of TMA 1970, s 42 and Sch 1B dealing with loss relief claims, and HMRC’s enquiry into the claim was validly made pursuant to TMA 1970, Sch 1A.
Background
The claimant taxpayer 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.
The taxpayer claimed that he was entitled to capital loss relief 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 by £165,800. In October 2011, HM Revenue and Customs (HMRC) made a payment to the taxpayer of £70,497.
