Insufficient documentation or evidence was available to demonstrate that a qualifying loan had been made to companies that were found not to be trading, and a claim for a loss on a loan to a trader was, therefore, disallowed. 

The appellant, an oil derivatives trader for several decades, continued to do so on his own account rather than on an employed basis. A former work colleague and an oil derivatives broker (LE) introduced the appellant to another individual (LF). LF was a director of a company (Emerging Markets Investment Ltd).

Following meetings between the three individuals, in which LF explained to the appellant a route trading scheme relating to mobile phone charging, the appellant decided to become involved and to commit monies. In February 2010, the appellant made a payment to ‘Emerging Markets’ of £130,020. In September 2011, the appellant was