In Neil McLocklin v HMRC (TC 03182), the First-tier Tax Tribunal (FTT) allowed a claim for share loss relief when shares had become of negligible value even though they were acquired by a nominee under some rather unusual conditions.

HMRC agreed that the shares were “qualifying shares” in a “qualifying trading company” see Loss relief (income tax) disposal of shares. The question for the tribunal to decide was whether Mr McLocklin’s shares had “been subscribed for” (s131(2)(b), ITA 2007) “in consideration of money or money’s worth” (s135(2), ITA 2007). No relief was available if this was not the case (see ss131 to 151, ITA 2007).

The facts:

HMRC took the above to mean that Mr Winter had subscribed for 128 shares and had then sold 18 to Mr McLocklin. Mr McLocklin had neither “subscribed for” the shares nor had he provided “money or money’s worth” (because he had none at the time the shares were issued and paid for).

However, the FTT considered that:

Therefore, Mr Winter had acquired the shares as nominee for Mr McLocklin, who was entitled to share loss relief, when they had become of negligible value.


Neil McLocklin v HMRC (TC 03182)

See also

Loss relief (income tax) disposal of shares