It is understood that the recent HMRC approach to taxpayers with Mansworth v Jelley capital losses in open tax years impacts on less than a thousand taxpayers. The point at stake is, however, the reliance which can be placed on HMRC guidance, a matter which impacts on everyone involved with our tax system.
Very broadly the current Mansworth v Jelley controversy turns on a change of HMRC stance on allowable deductions when preparing the CGT computation for shares acquired before 10 April 2003 by exercising employee share options.
The January 2003 Inland Revenue guidance stated clearly that where shares were acquired via employee share options the CGT acquisition cost of such shares was:
