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Mansworth v Jelley

The Mansworth v Jelley case in 2002 had a significant impact on the treatment of capital gains tax on employee share options. On this page you can access a range of articles, books and online resources providing quick links to judgments, articles and commentary.

What's on this page?

  • Useful links
  • Archive 2002-2003: Judgment, HMRC, Press coverage
  • Online articles
  • Articles and books from the Library

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2014 update

HMRC PTCIP decision
A 2014 update from the ICAEW Tax Faculty, reporting HMRC's Personal Tax Contentious Issues Panel (PTCIP) decision on Mansworth v Jelley. The Panel considered the circumstances in which HMRC will allow a claim for capital losses calculated on an earlier interpretation of the case.

Featured article

Hoops a many
Taxation, 22 August 2013, p.10-12
Provides background to the original Mansworth v. Jelley case and HMRC's original interpretation as well as discussing the revised HMRC guidance. To request a copy of this article please contact the Library.

Useful links

Legitimate expectation and reliance on HMRC guidance (Tax Guide 03/13)
Minutes of two meetings between concerned external stakeholders and HMRC on Mansworth v Jelley and general issues surrounding legitimate expectation and reliance on HMRC Guidance.

Mansworth v Jelley – HMRC response
Update from the ICAEW Tax Faculty, published on 1 May 2012, reporting HRMC's response.

Mansworth v Jelley – Part Two
Update published by the ICAEW Tax Faculty on 23 April 2012 reporting that HMRC is sending standard letters to those pursuing a claim.

Mansworth v Jelley
Update from the ICAEW Tax Faculty published on 13 February 2012. It reports that HMRC have invited those who have claimed Mansworth v Jelley losses to withdraw their claim.

Mansworth v Jelley revisited
The ICAEW Tax Faculty published a briefing, TAXGUIDE 1/10 Mansworth v Jelley Revisited, on 21 January 2010 that provides guidance on the practical implications of HMRC's change of view.

More on R&C Brief 30/09 and ‘Mansworth v Jelley’
Article published by the Tax Faculty on 11 June 2009 reporting that the ICAEW has ‘written to HMRC asking for clarification of a number of issues’. The text of the letter can be seen in Shares acquired before 10 April 2003 by exercising employee share options – allowable deductions: Revenue & Customs Brief 30/09 (TAXREP 34/09).

Jelley wobbles (again)
Article published in Taxation on 10 June 2009 in which Mark Rowland looks at ‘HMRC's late change of heart over capital gains tax on pre-April 2003 employee share options’.

‘Mansworth v Jelley’ – update
Article published by the Tax Faculty on 9 June 2009 reporting that the HMRC has overturned previous guidance.

Revenue & Customs Brief 60/09: Questions arising from Revenue & Customs Brief 30/09
Briefing issued by HMRC on 11 September 2009 in response to questions on the practical implications of the previous brief.

Revenue & Customs Brief 30/09: Shares acquired before 10 April 2003 by exercising employee share options – allowable deductions
Briefing issued by HMRC on 20 March 2009.

Archive 2002–2003

The selection of links below has been archived as they stood at the end of 2003.


Her Majesty's Inspector of Taxes v Jelley [2002] EWCA Civ 1829 (12 December 2002)
Text of the Court of Appeal judgment regarding the case as published on the British and Irish Legal Information Institute (BAILLI) database.

Mansworth (HM Inspector of Taxes) v. Jelley – Court of Appeal – 12 December 2002 (PDF 170kb/14 pages)
The full transcript of the appeal from the Gray's Inn Tax Chambers.


REV BN 31: Capital Gains: Options and the Market Value Rule
A Budget Note, issued on 9 April 2003, that closes the loophole opened by the Mansworth v Jelley case for share option exercises after 10 April 2003.

Press coverage

CGT ruling could mean millions to top earners (Daily Telegraph)
Article published on 12 August 2003 reporting on a change in interpretation of Mansworth v Jelley.

Mansworth v Jelley – The Law Wobbles Back (CIOT)
Press release from the Chartered Institute of Taxation (CIOT), issued 9 April 2003, welcoming the Chancellor's decision to reverse the Mansworth-Jelley ruling in the Budget.

Taking stock options (Economist)
Article published in The Economist on 13 February 2003 comparing the taxation of share options in the US and UK with reference to Mansworth v Jelley. Viewing requires subscription or registration.

High earners urged to amend tax returns and enjoy CGT windfall (Daily Telegraph)
Article published on 21 January 2003.

CGT windfall for company execs (Accountancy Age)
Article published in the online Accountancy Age on 20 January 2003.

Revenue defeat allows the fat cats to lap up more capital gains cream (Daily Telegraph)
Article published in the Daily Telegraph on 18 January 2003.

Don't miss out – Tax Relief Twice Over (Chantrey Vellacott)
Article by published on 1 January 2003 by Chantrey Vellacott DFK analysing the implications of the Mansworth v Jelley case.

Online articles

The library provides access to a range of articles in full text from leading business, finance and management journals. Access to articles is provided to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

Articles are available to logged-in ICAEW members, ACA students and other entitled users.

Articles and books in the Library collection

To find out how you can borrow books from the Library please see our guide to book loans. You can obtain copies of articles or extracts of books and reports by post, fax or email through our document supply service.

Can't find what you are looking for?

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