‘Mansworth v Jelley’ capital losses
Earlier this year HMRC revised their guidance concerning capital losses which arose on the exercise of certain share options prior to 10 April 2003. This was when the law was changed to reverse the 2002 Court of Appeal decision in ‘Mansworth v Jelley’.
HMRC have now issued further guidance which answers a number of commonly asked questions arising from the revised guidance published in May 2009. The main points addressed in the latest guidance are as follows:
- The treatment of losses accrued in tax years prior to 1996-97;
- Accrued losses where the enquiry window is now closed;
- Partially used losses;
- Gains or losses from 1996-97 onwards where there are open enquiries;
- The basis for HMRC’s current understanding of the law;
- The treatment of taxpayers who used HMRC’s previous guidance prior to the publication of Revenue & Customs Brief 30/09.