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Taxpayer properly claimed share loss relief in the tax year prior to the disposal

By Mark McLaughlin, July 2019

The Supreme Court held in relation to the taxpayer’s loss relief claim involving two tax years that the taxpayer was entitled to make his claim in the earlier tax year. 
 
The taxpayer purchased shares in a company in March 2010 for £500,000. The shares were sold in November 2010 for £85,500, resulting in a capital loss of £414,500. In January 2011, the taxpayer submitted his tax return for 2009/10. He claimed relief for capital losses realised in 2010/11 against his taxable income in the tax year 2009/10 (under ITA 2007, ss 131-132). The loss relief would result in his income tax liability for 2009/10 being reduced by £165,800.  
 
In December 2011, the taxpayer submitted his tax return for 2010/11. The capital gains pages included an entry for losses claimed against 2009/10 income, and the additional information section explained that share loss relief had already been

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