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Losses- No Sideways Loss Relief As Trade Was Not Commercial

By Mark McLaughlin, October 2016
Trade loss relief against general income was not due, because although the promotional activity was a trade or venture, it was not carried on on a commercial basis, and was not with a view to the realisation of profits of the trade.

The appellant undertook the activity of promoting his wife (Ms J), a professional concert pianist. He incurred losses from that activity for the tax years 2011/12 and 2012/13. The appellant appealed against a decision of HM Revenue and Customs that his activities as a promoter did not amount to a venture in the nature of trade, and that such activity was not carried on on a commercial basis or with a view to the realisation of profits of the trade (within ITA 2007, 66(2)).

The appeal raised two questions. The first was whether his activities as a promoter of Ms J constituted either a trade or a venture in the nature of a trade. The second (which was only relevant if the answer to the first question
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