TC09643 - [2025] UKFTT 01117 (TC)

The Appellant contends that having expressly conceded that Assessment 3 was not issued to best judgment the effect of the letter dated 21 May 2024 must have been to withdraw and reissue the Assessment. On the basis that the time limits for making an assessment expire on the earlier of 1 year of evidence of fact or 4 years after the end of the period to which the assessment relates the reissued Assessment is made out of time and therefore invalid.

HMRC contend that Assessment 3 was issued to the best judgment in the sense articulated in case law as recently reviewed by the Upper Tribunal in Sintra Global Inc v HMRC [2024] UKUT 00346 (TCC). Mr Mack used the information that was available to him at the time to calculate in a reasonable way the amount of RGD on the participation through use of Free Spins awarded following an MR Spin. His accepted evidence was that he had limited information concerning the number of Free Spins awarded. As the Appellant accepts, there was nothing capricious or vindictive about Mr Mack’s decision to assess or the basis on which Assessment 3 was calculated. However, when further information was provided, and the calculations were revisited, it was accepted that Assessment 3 needed to be recalculated. The letter of 21 May 2024 states that it is a recalculation. There is no indication that Assessment 3 was withdrawn and reissued. There is therefore no question that Assessment 3 is made out of time.