TC09615 - [2025] UKFTT 01016 (TC)

Fecha: 31-Jul-2025

Submissions and my view

Submissions and my view

75.

Mr Gordon submitted that as the GAAP Issue was not mentioned in the Closure Notices (or even in the covering letters), HMRC could not rely on it when defending the Closure Notices at the Tribunal. Mr Waldegrave’s position was that the GAAP Issue came within the wording of the conclusions and was also reflected in the amendments.

76.

In relation to all the relevant years except 2013-14, I find as follows:

(1)

the use of incorrectly lower closing stock values increases the losses and thus falls within the conclusion stated in all but one of the Closure Notices that Mr Tinkler’s “trade loss has been overstated”; and

(2)

it is clear from the profit and loss accounts that HMRC included their valuations for opening and closing stock in working out the figures included in the Closure Notices. Mr Tinkler’s returns were amended in line with those calculations.

77.

I thus find that HMRC can rely on the GAAP Issue before the Tribunal because it both comes within the wording of the Closure Notices for all years except 2013-14, and it also underpins the amendments they made to those the returns. I consider the 2013-14 year separately below.