In McMorris v HMRC [2014] UKFTT 1116 (29 December 2014) the FTT found that the appellant was not carrying on the trade of horse ownership.
The issue was whether Mr McMorris should be permitted to set losses incurred in a racehorse activity against other income of the same tax year. This depended on whether the losses were the result of a ‘commercial trade’ (ITA 2007 s 66).
Mr McMorris had purchased half a share of a racing horse. He had also agreed to meet half of the livery and racing costs. Unfortunately after a promising debut the horse’s performance had deteriorated. Mr McMorris and the co-owner of the horse had decided to sell it realising a substantial loss. Mr McMorris’ claim for loss relief was rejected on the ground that his horse ownership had been no more than a ‘hobby’.
Referring to...
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In McMorris v HMRC [2014] UKFTT 1116 (29 December 2014) the FTT found that the appellant was not carrying on the trade of horse ownership.
The issue was whether Mr McMorris should be permitted to set losses incurred in a racehorse activity against other income of the same tax year. This depended on whether the losses were the result of a ‘commercial trade’ (ITA 2007 s 66).
Mr McMorris had purchased half a share of a racing horse. He had also agreed to meet half of the livery and racing costs. Unfortunately after a promising debut the horse’s performance had deteriorated. Mr McMorris and the co-owner of the horse had decided to sell it realising a substantial loss. Mr McMorris’ claim for loss relief was rejected on the ground that his horse ownership had been no more than a ‘hobby’.
Referring to...
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