M Reid and Dr Emblin v HMRC

In M Reid and Dr Emblin v HMRC [2018] UKFTT 236 (25 April 2018) the FTT confirmed that carry-back claims must be made in the return for the year in which they arise and that a notice under TMA 1970 s 28B(4) is not a closure notice in relation to an enquiry opened under s 9A.

Both appellants had participated in a tax avoidance scheme known as the Corbiere Scheme which involved gilt-edged securities and in a film tax avoidance scheme. It was accepted that both schemes failed.

Dr Emblin claimed relief for losses arising under the film scheme in 2004/05 in his 2003/04 tax return. He was advised by HMRC to make a stand-alone claim and he complied whilst his return was amended under TMA 1970 s 9ZB to exclude the claim. Mr Reid claimed relief in the same way in his 2003/04 return and...