Farming losses: restriction on sideways loss relief – HMRC win in the Upper Tribunal

The UT has found for HMRC in its appeal in HMRC v. Naghshineh [2020] UKUT 0030 (TCC). Reversing the decision of the FTT, the UT confirmed that the approach to the “reasonable expectation of profit test” in s.68(3)(b) ITA 2007 propounded in Scambler and other v. HMRC [2017] UKUT 1 (TCC) was correct.