*R (on the application of Derry) v Revenue and Customs Commissioners

Income tax – Return. The proceedings concerned the correct treatment, for income tax purposes, of the respondent taxpayer's claim for share loss relief under s 132 of the Income Tax Act 2007 (s 132). The taxpayer had sold his shares in a company, realising a capital loss of £414,50. In his return for 2009/10, he had claimed share loss relief for that amount against his income for that year, under s 132. Further, the taxpayer's return for 2010/11 had stated that relief for the share loss had been obtained in the 2009/10. The appellant, the Revenue and Customs Commissioners (HMRC) opened an enquiry into the return for 2009/10 and, later, for that of 2010/11. Subsequently, it issued a demand. In dismissing HMRC's appeal against a decision by the Court of Appeal, Civil Division, in favour of the taxpayer in respect of one of two issues in contention, the Supreme Court held that the share loss relief which the taxpayer had claimed had been correctly deducted from his net income in 2009/10. The court, in so ruling, endorsed the guidance given by the Upper Tribunal (Tax and Chancery Chamber) in Eclipse Film Partners (No. 35) LLP v Revenue and Customs Commissioners[2014] STC 1114.

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