In GB Forbes v HMRC (TC01278 – 25 July) an individual (F) who was employed under PAYE also began a boat chartering business in 2001.
For 2002/03 to 2005/06 he claimed that losses including capital allowances which he had incurred in this business should be set against his employment income.
HMRC subsequently issued ‘discovery’ assessments disallowing the losses on the basis that substantially the whole of F’s time was not given to carrying on the trade as required by what is now ITA 2007 s 75.
F appealed accepting that he did not devote substantially all his time to the trade but contending that his business was not simply a leasing business since more than 40% of the charters of the boat included the provision of a skipper which was the provision...
