MD Cotter v HMRC

In MD Cotter v HMRC (CA – 8 February) an individual (C) submitted a 2007/08 tax return showing a significant liability. In January 2009 he submitted an amendment to the return stating 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). HMRC began an enquiry into the loss claim on the basis that it arose from an avoidance scheme and also took the view that C was not entitled to make a claim in a 2007/08 return for loss relief relating to 2008/09 but should have made a separate claim under TMA 1970 Sch 1A. In June 2009 they began county court proceedings to collect the tax shown in C’s original return. The Ch D gave judgment for HMRC ...