TC09550 - [2025] UKFTT 00702 (TC)

Fecha: 12-May-2025

The law

The law

32.

HMRC raised discovery assessments under section 29 TMA. Section 29 provides, so far as material:

“[29 Assessment where loss of tax discovered
(1)
If an officer of the Board or the Board discover, as regards any person (the taxpayer) and a [year of assessment2]
(a)
that any [income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax,] have not been assessed, or
(b)
that an assessment to tax is or has become insufficient, or
(c)
that any relief which has been given is or has become excessive,

the officer or, as the case may be, the Board may, subject to subsections (2) and (3) below, make an assessment in the amount, or the further amount, which ought in his or their opinion to be charged in order to make good to the Crown the loss of tax.

(2)

…

(3)

Where the taxpayer has made and delivered a return under [section 8 or 8A]2 of this Act in respect of the relevant [year of assessment]2, he shall not be assessed under subsection (1) above-

(a)

in respect of the [year of assessment] mentioned in that subsection; and

(b)

in the same capacity as that in which he made and delivered the return, unless one of the two conditions mentioned below is fulfilled.

(4)

The first condition is that the situation mentioned in subsection (1) above [was brought about carelessly or deliberately by] the taxpayer or a person acting on his behalf.

(5)

The second condition is that at the time when an officer of the Board

(a)

ceased to be entitled to give notice of his intention to enquire into the taxpayer's return under [section 8 or 8A]2 of this Act in respect of the relevant [year of assessment]; or

[(b) …

the officer could not have been reasonably expected, on the basis of the information made available to him before that time, to be aware of the situation mentioned in subsection (1) above.

(6)

For the purposes of subsection (5) above, information is made available to an officer of the Board if-

(a)

it is contained in the taxpayer's return under [section 8 or 8A]2 of this Act in respect of the relevant [year of assessment] (the return), or in any accounts, statements or documents accompanying the return;

(b)

it is contained in any claim made as regards the relevant [year of assessment] by the taxpayer acting in the same capacity as that in which he made the return, or in any accounts, statements or documents accompanying any such claim;

(c)

…

(7)

In subsection (6) above

(a)

…

(b)

any reference in paragraphs (b) to (d) to the taxpayer includes a reference to a person acting on his behalf.”

33.

Section 34 TMA provides that HMRC may make an assessment at any time within four years of the end of the tax year in question.

34.

Section 36 TMA extends the time limits for assessment to six years where the loss of tax has been brought about carelessly, that is, where the taxpayer has failed to take reasonable care and to twenty years in the case of deliberate behaviour.

35.

Section 36(1B) provides that a reference to a loss of tax brought about by the taxpayer includes a loss brought about by another person acting on behalf of the taxpayer.