In Jonathan Mark Slade & Jonathan James Slade v HMRC [2022] TC08548, the First Tier Tribunal (FTT) found the legal expenditure incurred defending rights to a number of assets collectively was not an allowable deduction for CGT purposes when one of those assets was sold alone.

The FTT found that:

The appeal was dismissed.

Comment

This case highlights that legislation can, at times, be rigid and prevent a deduction which taxpayers may, based on grounds of fairness and economics, assume that they will get.

The taxpayer, in this case, was unrepresented, which may have had a bearing on the outcome. It will be interesting to see if there will be an appeal. 

Useful guides on this topic

CGT: Deductible expenditure
What expenditure is allowable for Capital Gains Tax (CGT)? What about loan interest, early redemption fees etc?

How to appeal an HMRC decision
Disagree with an HMRC decision? How to appeal, what type of decision can you appeal and what are your different options when you disagree with HMRC? What are the key steps in making an appeal?

External links

Jonathan Mark Slade & Jonathan James Slade v HMRC [2022] TC08548


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