Atherton v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2016] UKFTT 831 (TC) (16 December 2016)

Atherton v Revenue and Customs (INCOME TAX/CORPORATION TAX : Assessment/self-assessment) [2016] UKFTT 831 (TC) (16 December 2016)

The Tribunal held that the appellant or his advisers carelessly completed the tax return by entering a 2008/09 employment loss in Box 20 of the 2007/08 return, which was designated for partnership losses. This constituted carelessness under s 29(4) TMA 1970. The discovery assessment issued by HMRC was valid because the error was only discovered after the Supreme Court decision in Cotter clarified the law. The appeal was dismissed.

Citation
[2016] UKFTT 831 (TC)
Parties
Appellant: Richard Atherton; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
16 December 2016
Procedural Posture
Income Tax/corporation Tax Assessment/self Assessment Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal dismissed
Legal Topics
Discovery Assessment, Self Assessment Procedure, Carelessness in Tax Returns, Retrospective Legislation, Loss Relief Claims
Tax Law Discovery Assessment Self Assessment Procedure Carelessness in Tax Returns Retrospective Legislation Loss Relief Claims

Case Brief

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Parties

Richard Atherton

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Assessment/self Assessment Appeal / First Tier Tribunal (tax) Final Judgment

Legal Issues

  1. 1 Whether the discovery assessment issued by HMRC was procedurally valid under s 29 TMA 1970
  2. 2 Whether the appellant or his advisers acted carelessly in completing the tax return
  3. 3 Whether HMRC made a valid 'discovery' after the Supreme Court decision in Cotter

Ratio Decidendi

The Tribunal held that the appellant or his advisers carelessly completed the tax return by entering a 2008/09 employment loss in Box 20 of the 2007/08 return, which was designated for partnership losses. This constituted carelessness under s 29(4) TMA 1970. The discovery assessment issued by HMRC was valid because the error was only discovered after the Supreme Court decision in Cotter clarified the law. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • The discovery assessment for tax year 2007/08 in the sum of £2,010,855.20 stands and is payable by the appellant.