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Tribunal Decision To Disallow Sideways Loss Relief Set Aside

By Mark McLaughlin, November 2016
A First-tier Tribunal decision to disallow sideways relief for trading losses was set aside, and the Upper Tribunal remitted the case for the First-tier Tribunal to consider whether an asparagus business was market gardening or farming, and to determine whether there was a single, composite trade of horse breeding and the asparagus business.

In April 2004, the appellant started to trade as a horse breeder. In 2008, she embarked on a new venture of growing asparagus for sale. The appellant claimed sideways loss relief (under TMA 1970, s 64) in respect of a trade described as ‘equestrian breeder and farming’ against declared income from employment in her tax return for 2008/09. Following an enquiry, HM Revenue and Customs (HMRC) issued a closure notice to disallow the losses. 

The appellant’s appeal to the First-tier Tribunal (FTT) was dismissed ([2014] UKFTT 0730 (TC)). The appellant appealed, on the ground
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