Ames v Revenue and Customs Commissioners

Capital gains tax – Exemptions and reliefs. The Revenue and Customs Commissioners (HMRC) had not erred in: (a) their interpretation of s 150A(2) of the Taxation of Chargeable Gains Act 1992 in relation to the taxpayer's exemption from capital gains tax following the sale of shares which had been eligible for tax reliefs under the enterprise investment scheme (EIS); and (b) failing to give that Act a rectifying construction. However, their decision, pursuant to s 5 of the Commissioners for Revenue and Customs Act 2005, not to allow the taxpayer's late claim for EIS relief had been flawed as they had misapplied HMRC guidance, thereby fettering the exercise of their discretion. Consequently, the Upper Tribunal (Tax and Chancery Chamber) dismissed the taxpayer's appeal against the decision of the First-tier Tribunal (Tax Chamber), but quashed HMRC's decision to refuse the taxpayer's late claim for EIS relief and remitted that decision to HMRC for reconsideration.

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