HMRC could raise an assessment outside the normal time limit to recover a loss of capital gains tax, as it was attributable to negligent conduct by the taxpayer’s adviser. The First-tier Tribunal did not have jurisdiction to consider a legitimate expectation argument by the taxpayer following incorrect HMRC advice.
Summary
A discovery assessment by HM Revenue & Customs (HMRC) to recover a loss of capital gains tax (CGT) was not out of time, as it was attributable to negligent conduct by the taxpayer’s adviser. The First-tier Tribunal (FTT) did not have jurisdiction to consider a legitimate expectation argument by the taxpayer following incorrect HMRC advice.
Background
The taxpayer made three disposals of shares in two companies over three tax years. Prior to the first share disposal, the taxpayer informed her accountant and tax adviser (M) that she
