Chances of success challenging HMRC?

Want to challenge a point of law

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So we have a case with a client whereby the rules of CG22500 catch her out.

For those not aware the rules of CG22500 state that disposals made by couples who separate but that are made in the same tax year as separation are treated as no gain no loss.

We have a situation with a client that the process took 9 months.  But as they originally separated in the November assets were not transferred in the same tax year (eventually sorted in August the following year).  Had they originally separated in say June and the process taken the same amount of time then they would have been fine.

So my challenge to potentially put to HMRC is that this leaves some tax payers disadvantaged for reasons beyond their control.  Should in fact the law be say 1 year from the date of separation regardless of which tax year.

I think there is some potential but in my thoughts but it will no doubt be a challenge.  Is there really much chance of success or is this just going to be a waste of time and resources?

Replies (5)

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By MBK
26th May 2017 07:59

It is just going to be a waste of time and resources

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By Ruddles
26th May 2017 08:53

What do you mean by "rules" of CG22500? Nothing in the Revenue manuals has any force of law.

I think that what you meant to say was that CG22500 clearly sets out the relevant legislative provisions, which in this case don't require a great deal of interpretation.

As Stepurhan says below, a challenge on a point of law is made because you believe that someone has misapplied or misinterpreted the law, and not because the law itself is wrong or unfair.

The law is what it is - if you want it changed, write to your MP.

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Stepurhan
By stepurhan
26th May 2017 08:46

As a general rule, challenges can only be based on the law as it is currently written, not the law as the challenger would prefer it to be. Whilst there might be merit in trying to get the law changed as you describe, it's not going to help you now.

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By mrme89
26th May 2017 09:56

'So my challenge to potentially put to HMRC is that this leaves some tax payers disadvantaged for reasons beyond their control'

With every single law, tax or otherwise, there will be winners and losers.

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Replying to mrme89:
paddle steamer
By DJKL
26th May 2017 10:09

I expect only hope would be re Europe wide legislation re individual rights, family life, enjoyment of property, equity, all treated same etc etc, as every so often pops up reported on the news.

I would start the crowdfunding appeal now as you will need the money.

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