The appellant’s tax return for 2011/12 included a state pension lump sum payment, and referred to it as “tax deducted”.
HM Revenue & Customs (HMRC) told the appellant that the payment was fully chargeable at her marginal rate of tax, and issued a revised self-assessment statement. However, the appellant maintained that the lump sum was not taxable, as she had been told by the Department for Work and Pensions (DWP) that it had already borne tax.
The appellant paid her tax liability in full in September 2013, and subsequently appealed against penalty assessments issued by HMRC. The appellant’s grounds for appeal were that HMRC had assured her that they would ascertain from the DWP whether or not the deferred lump sum pension payment was net of tax.
HMRC finally notified the appellant by letter on 2 August 2013 that they had obtained confirmation from the DWP that the
