Summary
HMRC was not entitled to issue a discovery assessment (under TMA 1970, s 29) on the basis that there was a discovery of an insufficiency of capital gains tax brought about carelessly by the appellant.
Background
The appellant (and his brother) sold their shares in company (A Ltd) to another company (ANS) in return for shares in ANS’s holding company (Holdco) on 4 April 2008. In his tax return for 2007/08, the appellant used £36 million as the proceeds and market value to be brought into account in his capital gains computation on the disposal. The valuation of the appellant’s shares in A Ltd was based on a written offer from a third party (WG) dated 25 March 2008 for the whole of A Ltd’s share capital (i.e. £72 million).
On 2 April 2009, the appellant (and his brother) sold their shares in Holdco for over £88.6 million to a
