In Dipak Patel v HMRC [2015] UKFTT 0013 (9 January 2015) the FTT found that a social worker carrying on two unrelated loss making trades was not entitled to loss relief.
Mr Patel was a psychiatric social worker who was employed full time. In 2004 he started a trade known as Silver Spice supplying ingredients and running cookery workshops. In 2007 he started a separate trade selling Indian art. The issue was whether he could set off losses incurred in either of those trades against his employment income. HMRC denied set off on the ground that the trades did not satisfy either of the conditions of ITA 2007 s 64. They were not conducted either on a commercial basis or with a view to profit.
The FTT accepted that some factors pointed to a commercial approach: the...
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In Dipak Patel v HMRC [2015] UKFTT 0013 (9 January 2015) the FTT found that a social worker carrying on two unrelated loss making trades was not entitled to loss relief.
Mr Patel was a psychiatric social worker who was employed full time. In 2004 he started a trade known as Silver Spice supplying ingredients and running cookery workshops. In 2007 he started a separate trade selling Indian art. The issue was whether he could set off losses incurred in either of those trades against his employment income. HMRC denied set off on the ground that the trades did not satisfy either of the conditions of ITA 2007 s 64. They were not conducted either on a commercial basis or with a view to profit.
The FTT accepted that some factors pointed to a commercial approach: the...
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