SpC 673 (2008) Employee v HMRC

Discovery. Negligence - HMRC won.

Case Summary:

A Special Commissioner held that a charge to tax under ICTA 1988, s. 135 arose on the exercise of share options even though the shares were not sold, and that the Revenue were entitled to assess the taxpayer under TMA 1970, s. 29.  This is because of the fact that income which ought to have been self-assessed to income tax was not assessed was attributable to negligent conduct on the part of the taxpayer or his advisers within the meaning of s. 29(4).

In any event, the Revenue officers could not have been reasonably expected, on the basis of the information made available to them, to be aware that income which ought to have been self-assessed to income tax was not assessed within the meaning of s. 29(5).