The appellants in this case had received redress payments from Barclays Bank, but did not include these amounts on their personal tax returns, declaring only certain related amounts (Barnett and Fox v HMRC [2023] UKFTT 62 (TC)).
The FTT was clear that the individuals had not taken reasonable care:
“They used professional advisers to complete their returns and they provided evidence that their usual course of action was to provide their accountants with all the relevant information and paperwork for the year in order to complete the return. However, on this occasion, despite providing them with the details of the interest paid to them (and tax deducted from it), they did not tell their accountants about the redress element of the payment. Experienced businessmen would not be used to receiving sums of several hundred thousand pounds without tax to pay on the receipt. It was not reasonable for them to leave out the basic redress amounts from information provided to their accountants for the purposes of completing their tax returns.
We find that their actions and omissions were not a reasonable course of action and therefore they had not taken reasonable care. Therefore the penalties for the inaccuracies in their returns are validly imposed.”
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08704.html
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