HMRC v R Hely Hutchinson

In HMRC v R Hely Hutchinson [2017] EWCA Civ 1075 (26 July 2017) the Court of Appeal found that HMRC had been entitled to change its policy on the treatment of Mansworth v Jelley [2003] STC 53 losses.

Mr Hutchinson had exercised share options. He had then taken advantage of an apparent change in the permitted treatment of those transactions which enabled him to claim additional losses in later periods following HMRC guidance. However on 2 June 2003 HMRC opened enquiries into Mr Hutchinson’s return warning him that they did not accept his additional losses. In 2009 HMRC following legal advice issued corrected guidance stating that it would not accept the additional losses unless there had been reasonable detrimental reliance on the 2003 guidance. HMRC did not consider that Mr Hutchinson had shown this and served closure notices bringing the enquiries to...