Summary
HMRC tax return enquiry closure notices disallowing the claimant’s Mansworth v Jelley capital loss claims were quashed, and an application for judicial review of HMRC’s decision to refuse the claims was allowed.
Background
The claimant exercised options under an unapproved share option scheme with his employer in 1999 and 2000. He disposed of the shares on the same day. Following the decision in Mansworth v Jelley ([2003] STC 53), HM Revenue and Customs (HMRC) published a technical note (‘Tax treatment of options following Mansworth v Jelley’) in January 2003. Based on that guidance, the claimant made claims for capital losses on his share disposals.
HMRC opened an enquiry into the loss relief claims. This was followed by lengthy correspondence between the claimant and HMRC. The claimant submitted tax returns for 2005/06 and 2006
