TC09585 - [2025] UKFTT 00867 (TC)

the failure to notify was not deliberate;

the failure to notify was prompted;

the penalty range was 10% to 30% in respect of the tax year 2015/16 and 20% to 30% in respect of the tax years 2012/13 and 2014/15;

the discount to be applied for the quality of disclosure was 70% of the difference between the maximum and minimum in each case, which is to say 14% in the case of the tax year 2015/16 and 7% in the case of the tax years 2012/13 and 2014/15; and

the reason for that figure of 70% was as follows:

“Telling 20/30

At the start of my enquiry you did not volunteer any information about the other properties you had bought and sold. You only referred to the last disposal and did not tell me about the other three. The reduction for disclosure is 20% (out of 30%).

Helping 25/40

You have not accepted that a tax liability arises. you still claim that you intended to live in the properties, even although the facts point to you acquiring the properties for the purpose of realising a gain. Your computations of the gains include deductions for expenditure that you could not have incurred. I asked you to explain where these figures came from or where you acquired the money to pay those expenses, but you have chosen not to respond. You claimed that you did not keep any documents, but have not attempted to obtain copies. The reduction for helping is 25% (out of 40%).

Giving 25/30

There were delays at the start of this check, but I put that down to the busy tax return period that affected your advisor, and I shall not attribute those delays to you. All in all you have given me access to all of the documents you say that you have, albeit you could have done more to verify the expenditure and obtain copies of the loan agreement. I shall allow a reduction of 25%.”