In D Kishore v HMRC (TC02855 – 13 September) an individual (K) bought and sold large numbers of mobile telephones between 2000 and 2006 mostly as an agent for a Singapore company but also as an independent principal. In 2010 he submitted a 2006/07 tax return claiming terminal loss relief of £24m on the basis that his trade had ceased in 2006. HMRC rejected the claim and K appealed. The First-tier Tribunal dismissed his appeal observing that he had remained registered for VAT and had resumed active trading in 2009 and finding that he ‘did not in fact cease trading in 2006/07’. (The tribunal also held that K was carrying on a single trade regardless of whether he was acting as an agent or as an independent principal.)
Why it matters: The First-tier Tribunal upheld HMRC’s contention that the...
