Lynsey Lapsley v The Commissioners for HMRC

Lynsey Lapsley v The Commissioners for HMRC

The Tribunal found that HMRC validly issued the discovery assessment under section 29(1)(b) TMA 1970, as the officer could not have reasonably been expected to be aware of the insufficiency of tax before the enquiry window closed, and the information about the PAYE refund was not 'made available' within the statutory meaning. The calculation of £8,630.92 represented the correct insufficiency of tax for 2018-19.

Parties
Appellant: Lynsey Lapsley; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
12 February 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Discovery Assessment, Higher Income Child Benefit Charge (hicbc), Self Assessment, PAYE Refund, Section 29 Taxes Management Act 1970, Section 34 Taxes Management Act 1970
Tax Law Discovery Assessment Higher Income Child Benefit Charge (hicbc) Self Assessment PAYE Refund Section 29 Taxes Management Act 1970 Section 34 Taxes Management Act 1970

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Parties

Lynsey Lapsley

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 validly issued a discovery assessment for the 2018-19 tax year under section 29 TMA 1970
  2. 2 Whether the statutory conditions for a discovery assessment were met, including information availability and time limits
  3. 3 Whether the calculation of the assessment (£8,630.92) was correct

Ratio Decidendi

The Tribunal found that HMRC validly issued the discovery assessment under section 29(1)(b) TMA 1970, as the officer could not have reasonably been expected to be aware of the insufficiency of tax before the enquiry window closed, and the information about the PAYE refund was not 'made available' within the statutory meaning. The calculation of £8,630.92 represented the correct insufficiency of tax for 2018-19.

Court Disposition

Appeal dismissed

Orders

  • Discovery assessment for £8,630.92 for 2018-19 upheld
  • Recommendation that HMRC provide a clear calculation to Ms Lapsley before recovery action