UT (Tax & Chancery) UT-2024-000024 - [2025] UKUT 00156 (TCC)

Our conclusion on the Enquiry Appeal is sufficient to dispose of the appeals and it is not strictly necessary to address HMRC’s cross-appeal. However, having heard full argument on the Assessment Appeal we shall express our views upon it.

HMRC issued discovery assessments in 2017 following their enquiries into Return A and Return C. The assessments charged tax pursuant to s75A FA 2003 in order to protect HMRC’s position should the enquiry notices be found to be invalid for any reason.

HMRC, in their cross-appeal, seek to challenge the Decision and submit that the FTT erred in law in deciding that the discovery assessments were out of time. They argue that the assessments were lawfully made in reliance upon the 20-year time limit in paragraph 31(2A)(b) Schedule 10 FA 2003 because the Appellants had failed to comply with an obligation under s76(1) to file a return in respect of the notional land transaction pursuant to s75A 2003.