In F Fard v HMRC (TC00941 – 8 February) an individual (F) held shares in a company which ceased to trade during 2004/05. He was granted loss relief for 2004/05 against his employment income for that year leaving a balance of unused relief. He subsequently submitted a 2005/06 return claiming to carry forward this unused relief against his employment income for 2005/06. HMRC initially made the repayments claimed but subsequently issued amendments on the basis that the relevant legislation (see now ITA 2007 s 132) only permitted such relief to be carried back and did not permit it to be carried forward and additionally that the shares had originally been issued to F’s father and that F was not entitled to relief because he had not ‘subscribed for’ the shares as required by what is now ITA 2007 s 131(2). The First-Tier Tribunal upheld the...
