An optician who sold his optician’s franchise business and was subsequently a self-employed locum was unable to carry forward losses from the franchise business against his locum profits.
The appellant was a franchisee of Dolland & Aitchison, and as such maintained an optician’s business on his own account. His franchise business ceased on 3 April 2009, and he subsequently commenced self-employment as a locum dispensing optician on 1 June 2009.
The appellant sought to carry forward losses from the franchise business to the tax year 2009/10 (under ITA 2007, s 83). Following an enquiry into his tax return for 2009/10, HM Revenue & Customs (HMRC) issued a closure notice, disallowing the losses. The appellant appealed.
HMRC contended (among other things) that the appellant's Dolland & Aitchison franchise was a trade rather than a profession; by contrast, the appellant's
