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Discovery assessment was ‘stale’ and HMRC ignored case law on discovery

By Mark McLaughlin, February 2020

The First-tier Tribunal held that a discovery assessment was ‘stale’ due to a delay of around 30 months between HMRC making the discovery and issuing the assessment, and criticised HMRC for not drawing the tribunal’s attention to case law on the concept of ‘staleness’. 

The appellant appealed against a closure notice and discovery assessments for the tax years 2008/09 to 2013/14 (inclusive). At the beginning of the First-tier Tribunal (FTT) hearing, the appellant decided to offer no case in respect of the closure notice and discovery assessments. The FTT therefore dismissed the appellant’s appeal in respect of them, except for the discovery assessment relating to the tax year 2009/10. 

The FTT asked HM Revenue and Customs (HMRC) for details of the purported discovery assessment for the tax year 2009/10. HMRC informed the tribunal that:

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