Expenses claimed relating to losses arising on the non-purchase of two plots of land were not allowable trading expenses, as the appellant was unable to prove that he was the beneficial owner of the contracts to purchase them.  
 
The self-employment pages of the appellant’s self-assessment return for the tax year 2010/11 gave a commencement date for property trading of 5 April 2011. No income was shown, and losses of £122,213 were claimed. HM Revenue and Customs (HMRC) opened an enquiry into the return (under TMA 1970, s 9A). 
 
The appellant had paid the sum of £122,213 in settlement of a County Court action against his son (PL) and daughter-in-law (TW) for breach of contract in respect of the non-purchase of two plots of land. PL and TW also forfeited deposit monies of £31,957 in respect of the plots. It was asserted that the appellant was entitled to set off the losses as a