UKFTT 206 (2009) Anderson (deceased) v HMRC

Discovery - HMRC won 

Case Summary:

Miss Anderson, before her death, had returned a chargeable event gain. She claimed, incorrectly, a tax credit on an overseas bond. When this came to light HMRC assessed. The essence of the taxpayer’s argument was that a copy of the chargeable event certificate had been supplied by the insurance company to HMRC and so when the enquiry window closed HMRC should have known about the understatement.

It was held that the Inspector could make a discovery assessment following Langham v Veltema. And despite her illhealth, from which she died, Miss Anderson had also been negligent. HMRC did not pursue a penalty.