In Webster [2020] EWHC 2275 (Ch) (25 August 2020) the High Court held that it had no jurisdiction to rectify a mistake in a tax return consisting of an incorrect claim to carry back a gift aid donation to the previous tax year.
In August 2017 the taxpayer (W) made a donation to a charity of £800 000 and completed a gift aid declaration. He intended to elect for the donation to be treated for tax purposes as made in 2016/17 but when he submitted his tax return for that year he included only an amount of £400 000. Subsequently realising his mistake W submitted an amended return including the full £800 000. Following an enquiry however HMRC ruled that the original carry back was incorrect and any subsequent amendment to carry back gift aid was invalid as carry back elections could only be made in an original return. HMRC therefore treated the donation as if it were made wholly...
