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Flawed decision
KEY POINTS
- Taxpayer sold shares that were eligible for enterprise investment scheme relief but for which he had made no specific claim.
- HMRC said no enterprise investment scheme relief was due without an income tax claim.
- A review of parliament’s intended purpose of TCGA 1992 s 150A(2).
- Tribunal carried out a judicial review of HMRC’s decision.
The Upper Tribunal has held in Ames v CRC that capital gains tax relief under the enterprise investment scheme (EIS) is not available on the disposal of shares when no income tax relief was claimed on their acquisition. However in refusing to allow a late claim for the relief HMRC had misapplied the guidance fettered its discretion and failed to consider material facts. The tribunal therefore granted judicial review of HMRC’s decision.
Background
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