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Loss Relief Denied As No Money Lending Trade Had Been Carried On

By Mark McLaughlin, March 2016
The taxpayer’s claim that a loss (resulting from an irrecoverable loan made by him to a company that went into liquidation) arose from a trade of money-lending was rejected by the tribunal.  

The appellant was a quantity surveyor, and also a director of a company that went into voluntary liquidation in March 2008. He made a loss claim (initially under ICTA 1988, s 380(1)(a), (b), although the appellant later clarified that the claim was made under ITA 2007, s 64) by letter in May 2010 and amendment to his 2009/10 tax return in July 2010. 

The basis for the loss claim was that loans made by the appellant to the company were irrecoverable due to its liquidation. The appellant considered that there was a loss from a trade of money-lending, which should be allowed against his declared profits as a quantity surveyor.

Following an enquiry into the appellant’s tax return for 2009/10, HM
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