Blackburn (HM Inspector of Taxes) v Keeling: CA 21 Aug 2003

The tax payer sought to have reflected in his PAYE coding, his substantial trading losses arising from his activities as a Name /underwriter at Lloyds in 2003.
Held: The underwriting year 2003 ends in the year of assessment 2003/4, and therefore ‘corresponds’ to that year of assessment. Accordingly, losses declared in May 2003, and other losses derived from payments made up to the end of the underwriting year 2003, regardless of their derivation, are ‘taken to be’ losses ‘in’ the year of assessment 2003/4. However the regulations restricted the making of claims to those which had been established at the time the claim for relief was made. That did not apply here, and the appeal by the Revenue succeeded.
Carnwarth LJ said: ‘This elaborate deeming provision has the effect (so far as it applies) that, where under section 380(1)(b) loss relief is claimed on income in the preceding year, the claim nonetheless ‘relates’ to the later year (para 2(3)). The amount of the claim is computed using the formula in paragraph 2(4), based on the income in the previous year; but it does not affect the tax position in the earlier year (para 2(3)). It gives rise to a ‘free-standing credit’ (in the Revenue’s language) which can be used in any of the ways set out in paragraph 2(6).’


Lord Justice Waller, Lord Justice Carnwath, Lord Phillips of Worth Matravers, Mr


[2003] EWCA Civ 1221, Times 22-Sep-2003, Gazette 16-Oct-2003




Finance Act 1993 Part II Chapter III, Income and Corporation Taxes Act 1988, Income Tax (Employment) Regulations 1993 (SI 1993/744) 7


England and Wales


CitedJones (HM Inspector of Taxes) v O’Brien 1988
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Appeal fromBlackburn (H M Inspector of Taxes) v Keeling ChD 9-Apr-2003
The taxpayer was a name at Lloyds. The inspector appealed a finding that the taxpayer’s trading losses could be attributed to one particular year, and set off through his PAYE coding. The difference would be that according to the inspector’s . .

Cited by:

CitedCotter v Revenue and Customs SC 6-Nov-2013
This appeal asked as to the boundary between the jurisdiction of the First-tier Tribunal (Tax Chamber) and that of the county court or the High Court, and the legality of the approach which the Revenue took to entries which Mr Cotter, had made in a . .
CitedHM Revenue and Customs v Cotter CA 8-Feb-2012
Mr Cotter’s accountants had submitted a second tax return adding claims to loss relief in the following year. The claims were contentious, but he invited a review by the Revenue asserting that the losses wiped out any liability to tax. The Revenue . .
CitedRevenue and Customs v Cotter ChD 14-Apr-2011
The taxpayer’s accountants had submitted a tax return amending the taxpayer’s own return adding claims for losses. The accountant acknowledged the contentious nature of the claim and invited a review. The Revenue sought now to recover the tax due . .
CitedDerry, Regina (on The Application of) v Revenue and Customs SC 10-Apr-2019
D bought 500,000 shares in TY 2009/10 for pounds 500,000 in Media Pro Four Ltd. In tax year 2010/11 he sold them to ‘Island House Private Charitable Trust’ for pounds 85,500, realising a loss of pounds 414,500. His 2009/10 tax return claimed share . .
Lists of cited by and citing cases may be incomplete.

Income Tax

Updated: 03 February 2022; Ref: scu.185675