E Thomson and others v HMRC

Cathya Djanogly

In E Thomson and others v HMRC [2018] UKFTT 396 (16 July 2018) the FTT found that the appellants had not been trading in derivatives so that their loss was not allowable (ICTA 1988 s 380).

The three appellants had entered into a financial contract described as a contract for differences (CFD). They contended that they had entered into the contract in the course of a trade of dealing in derivatives and that the CFD had resulted in a loss which could be set against their other taxable income. HMRC refused the claims for loss relief as it considered that the appellants were not carrying on a trade on a commercial basis with a view to profit. It also charged the appellants penalties for negligent completion of their tax returns (TMA 1970 s 95).

The FTT observed that none of the appellants had the necessary expertise to...

If you are not a subscriber, subscribe now to read this content.

If you are already a subscriber, sign in

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.