Pattullo v Revenue & Customs [2014] UKFTT 841 (TC) (26 August 2014)

Pattullo v Revenue & Customs [2014] UKFTT 841 (TC) (26 August 2014)

The Tribunal found that HMRC made a valid discovery under s29(1) TMA 1970 following the Court of Appeal decision in Drummond, but the hypothetical officer could not reasonably have been expected to be aware of the insufficiency of tax at the closure of the enquiry window based on information in the appellant's return; thus, the condition in s29(5) was not satisfied and the assessment was invalid.

Citation
[2014] UKFTT 841 (TC)
Parties
Appellant: Neil Pattullo; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
26 August 2014
Procedural Posture
Capital Gains Tax Discovery Assessment Appeal / Final Judgment by First Tier Tribunal (tax Chamber)
Outcome
Appeal dismissed
Legal Topics
Discovery Assessment, Capital Gains Tax, Tax Avoidance Schemes, Res Judicata, Abuse of Process
Tax Law Discovery Assessment Capital Gains Tax Tax Avoidance Schemes Res Judicata Abuse of Process

Case Brief

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Parties

Neil Pattullo

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Capital Gains Tax Discovery Assessment Appeal / Final Judgment by First Tier Tribunal (tax Chamber)

Legal Issues

  1. 1 Validity of discovery assessment under TMA 1970 s29
  2. 2 Whether HMRC officer could reasonably have been expected to be aware of chargeable gains or excessive relief
  3. 3 Whether issue of validity is res judicata

Ratio Decidendi

The Tribunal found that HMRC made a valid discovery under s29(1) TMA 1970 following the Court of Appeal decision in Drummond, but the hypothetical officer could not reasonably have been expected to be aware of the insufficiency of tax at the closure of the enquiry window based on information in the appellant's return; thus, the condition in s29(5) was not satisfied and the assessment was invalid.

Court Disposition

Appeal dismissed

Orders

  • Assessment raised by HMRC declared invalid as s29(5) TMA 1970 condition not satisfied
  • No amendment to grounds of appeal permitted