12 November 2013
D Kishore (TC2855)
The taxpayer bought and sold wholesale consignments of mobile telephones from UK and EU suppliers both as an agent of a Singapore company and on his own account between 2000 and 2006.
He claimed terminal loss relief under ITA 2007, s 89 in his 2006/07 tax return. HMRC refused the claim. The taxpayer appealed.
The First-tier Tribunal concluded the taxpayer had not ceased trading in 2006/07 because the he had continued to be registered for VAT and had resumed active trading in 2009.
The judge also found the taxpayer was carrying on a single trade, regardless of whether he was acting as an agent or as an independent principal.
The taxpayer’s appeal was dismissed.
