The Upper Tribunal has rejected the taxpayer’s appeal in an SDLT case (Redmount Trust Company Ltd v HMRC  UKUT 68 (TCC)). The FTT had upheld HMRC’s closure notice and, in the alternative, had held that a discovery assessment would have been valid.
The UT concluded that there was no error in the FTT’s decision. The enquiry was validly opened and it was not material whether the return was strictly necessary. The UT also agreed with the FTT that the time limit (under FA 2003, Sch. 10, para. 31(1)) did not apply to closure notices. Taxpayers were instead protected from “an unnecessarily prolonged enquiry” by para. 24 (“Direction to complete enquiry”).
These conclusions meant that the taxpayer’s appeal failed. The validity of the discovery assessment was therefore not determined.
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Stamp Duty Land Tax is a well-written, user-friendly guide to the complexities of SDLT, written for accountants, solicitors and other tax professionals, with plenty of worked examples. Topics covered include basic principles, leasehold transactions, partnerships, trusts, reliefs, anti-avoidance legislation and recent tribunal decisions. Full reference is made throughout to relevant legislation, case law and guidance from HMRC.