E Cumming-Bruce v HMRC

In E Cumming-Bruce v HMRC [2022] UKUT 233 (TCC) (24 August 2022) the Upper Tribunal (UT) found that the First-tier Tribunal (FTT) had not made an error of law in deciding that HMRC had correctly enquired into the taxpayer’s claim for capital losses. The capital loss claims were not stand-alone claims but formed part of the self-assessment return meaning that HMRC had been correct to enquire into those losses under TMA 1970 s 9A. 

Following the Court of Appeal’s judgment in Mansworth v Jelley [2002] EWCA Civ 1829 and an associated HMRC press release in January 2003 the taxpayer claimed capital losses by way of in-time amendments to previously submitted tax returns. The taxpayer had sent a letter to HMRC enclosing revised calculations of capital losses realised on the disposal of shares acquired pursuant to an adjustable share option...