In C Johnson v HMRC (TC02094 – 5 July) an individual (J) who was employed under PAYE also began a yacht chartering business in 2003. He claimed that losses including capital allowances which he had incurred in this business should be set against his employment income. In 2010 HMRC issued assessments for 2003/04 to 2006/07 inclusive disallowing the losses on the basis that substantially the whole of J’s time was not given to carrying on the trade as required by what is now ITA 2007 s 75. J appealed contending that he should be regarded as providing services rather than simply leasing the yacht. The First-tier Tribunal rejected this contention and upheld the assessments for 2004/05 to 2006/07 inclusive (but allowed J’s appeal against the 2003/04 assessment on the grounds that it had been issued outside the statutory...
