In Stephen Kitching v HMRC TC02781 [2013] an accountant taxpayer was denied income tax relief for his trade losses. His sports shop had not made profits for 14 years running.
There is a restriction in sideways trade where HMRC can show that a trade is run uncommercially. The Tribunal found that the Mr Kitching was interested in sports but was not concerned about profits and was possibly more concerned about providing his partner, who worked in the shop with a job. It disallowed the losses.
Comment
A cautionary tale for those running "lifestyle businesses".