HMRC v P L Drown & R E Leadley

In HMRC v P L Drown & R E Leadley [2017] UKUT 111 (24 March 2017) reversing the FTT’s decision the UT found that personal representatives could not make a negligible value claim under TCGA 1992 s 24(2).

During his lifetime Mr Leadley had invested in two companies and made a loan to a third one. By 5 April 2010 the shares had become valueless and the loan irrecoverable. On 6 April 2010 Mr Leadley was served with notice under TMA 1970 s 8 to file a tax return for the year 2009/10 but he had not done so by 11 May 2010 when he was killed in a motoring accident. Had he filed a return before his death he could have claimed relief in respect of both the shares and the loan. The issue was whether his personal representatives could claim the...