09 March 2020

Sherrington, Metcalfe and Waite v HMRC; (FTT)

The FTT issued its decision in Sherrington, Metcalfe and Waite v HMRC on 9 March 2020. The appellants had claimed trading losses in respect of derivative contracts they had entered into with the Pendulum Corporation in the Seychelles.  The FTT dismissed the appeals, holding that the appellants had not been trading on a commercial basis with a view to profit. The FTT found that the arrangements constituted a tax avoidance scheme and the appellants had entered into the arrangements in order to generate a tax loss.

Sadiya Choudhury and Quinlan Windle acted for HMRC.

To see the approved Decision, click here.