This case involved a consideration of the interaction of the discovery powers and the statutory review provisions (Buckingham v HMRC [2023] UKFTT 358 (TC)). The key facts were summarised as follows at the start of the FTT decision:
- HMRC’s case officer, Mr Butler, issued a closure notice in relation to certain special dividends, increasing Mr Buckingham’s overall tax liability by £10,599.15.
- Mr Buckingham appealed that closure notice, and on 10 November 2020 Ms Laube, an HMRC review officer, correctly decided that HMRC had been out of time to open an enquiry under TMA s 9A. The closure notice was withdrawn.
- On 15 December 2021, Mr Butler issued Mr Buckingham with a “discovery” assessment under TMA s 29; that assessment reflected the earlier closure notice amendment. Mr Buckingham appealed the discovery assessment and asked for a statutory review.
- On 30 March 2022, Ms Amelia Vickerman issued her review decision, holding that the whole of the special dividend was income for UK tax purposes, and that the discovery assessment was therefore “varied” so as to increase the tax due from Mr Buckingham by a further £26,267.21.
- Mr Buckingham notified his appeal to the Tribunal. In his grounds of appeal, he accepted Mr Butler’s income/capital split, but disagreed with Ms Vickerman’s review decision. At or around the same time, he paid the extra tax charged by Mr Butler’s assessment.
The FTT decided that Mr Butler’s discovery assessment was correct. The tribunal also held that Ms Vickerman’s statutory review decision was out of time. The FTT therefore did not increase the assessment made by Mr Butler.
The tribunal also specifically considered whether the conditions for a discovery assessment had been met and concluded that they had. In particular, no information had been provided on Mr Buckingham’s return as to the nature of the special dividend. The discovery assessment made by Mr Butler was therefore confirmed.
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08782.html
Related content from Claritax Books
Discovery Assessments, by tax barrister Keith Gordon, is a detailed, clearly written guide to the law and practice in this area. Based on the author’s personal involvement in many leading cases, the book contains much practical advice explaining when and how such assessments may be challenged.
