TC09535 - [2025] UKFTT 00595 (TC)

We agree with Mr Gargan that it is for HMRC to establish, on the balance of probabilities, that Officer Kane made valid discovery assessments within 20 years after the end of the year of assessment to which it relates. We find that she did. Indeed, the validity of the discovery assessments was not challenged by the appellant.

So, the burden now shifts to the appellant to show that those assessments overcharged her. It is her view that they do so overcharge her. This is because her former husband benefited from the income derived from the property and thus should be jointly responsible for the tax on that income. And that repayments of the loan taken out to purchase the solar panels should be deducted from her income.

Unfortunately for the appellant, we do not agree with this view. We say this for the following reasons:

The property was jointly owned by the appellant and a former husband. However, the general rule of apportionment that any income derived from the property is deemed to be owned equally does not apply to spouses who are not treated as living together. In this case it is clear from the evidence that they were physically separated in circumstances in which the separation was likely to be permanent with effect from November 2016.