In HMRC v Cotter (Ch D – 14 April) an individual (C) failed to pay the tax due for 2007/08 and HMRC began proceedings to collect it. C defended the proceedings contending that he had made a loss in an employment for 2008/09 and that he should be allowed to set this loss against his income for 2007/08 under ITA 2007 s 128(2).
The Ch D rejected this contention and gave judgment for HMRC holding that C could not amend his 2007/08 return to include the claim but had to make a separate claim under TMA 1970 Sch 1A. C’s claim for loss relief was not a defence to HMRC’s claim for payment of the tax due for 2007/08.
Why it matters: ITA 2007 s 128 permits loss relief to be carried back. However the Ch D confirmed...
