A claim for charitable giving relief on the gift of shares to a charity was denied as insufficient evidence was presented of the taxpayer’s purported gift, the charity did not meet the statutory test, and the appellant’s tax return contained careless inaccuracies resulting in an understatement of tax, such that a penalty had been calculated correctly. 

The appellant took professional advice from an Isle of Man tax advisory company (MTC), and invested £30,000 of his own money, which together with a loan facility of £170,000 from an Isle of Man company granted on 5 March 2010, was used to purchase shares which he gifted to the trustee of a Cyprus-based charity (M). The appellant was allegedly told by MT that the loan would be repaid by the sale of the shares and not by him.