Douglas Boulton v The Commissioners for HMRC

Douglas Boulton v The Commissioners for HMRC

The Tribunal found that HMRC made a valid discovery of an insufficiency of tax under section 29 TMA 1970, as the Appellant’s return omitted the released or written-off director’s loan and no relevant information was made available in or with the return. The settlement and subsequent letter from the liquidator constituted a release or write-off for the purposes of section 415 ITTOIA 2005. The Appellant’s omission was caused by carelessness, as a prudent taxpayer would have sought written advice or disclosed the issue, and the penalty under Schedule 24 FA 2007 was properly imposed.

Parties
Appellant: Douglas Boulton; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
15 April 2026
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Income Tax, Discovery Assessment, Penalties for Errors, Director’s Loan Account, Release or Write Off of Debt
Tax Law Income Tax Discovery Assessment Penalties for Errors Director’s Loan Account Release or Write Off of Debt

Case Brief

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Parties

Douglas Boulton

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether HMRC made a valid discovery under section 29 TMA 1970
  2. 2 Whether the settlement agreement and liquidator’s letter constituted a release or write-off under section 415 ITTOIA 2005
  3. 3 Whether the Appellant’s return contained a careless inaccuracy justifying a penalty under Schedule 24 FA 2007

Ratio Decidendi

The Tribunal found that HMRC made a valid discovery of an insufficiency of tax under section 29 TMA 1970, as the Appellant’s return omitted the released or written-off director’s loan and no relevant information was made available in or with the return. The settlement and subsequent letter from the liquidator constituted a release or write-off for the purposes of section 415 ITTOIA 2005. The Appellant’s omission was caused by carelessness, as a prudent taxpayer would have sought written advice or disclosed the issue, and the penalty under Schedule 24 FA 2007 was properly imposed.

Court Disposition

Appeal dismissed

Orders

  • Discovery assessment and penalty upheld
  • No reduction or suspension of penalty