UK Supreme Court Upholds Income Tax Treatment in Alex Gerko Trader Profit Case

The UK Supreme Court dismissed appeals in a tax case involving Alex Gerko and other traders, leaving in place a ruling on the treatment of amounts received under the CAP.

In a unanimous decision, the court dismissed both HMRC’s appeal and the appeal by the individual members. It said the Special Capital received by the individual members under the CAP is income chargeable to income tax under section 687 of the Income Tax (Trading and Other Income) Act 2005.

The dispute concerned traders’ shares of trading profits earned between 2010 and 2015. The decision means the individuals, including Gerko, did not succeed in their bid to challenge the income tax treatment of those payments.