This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Discovery assessments brought about by the carelessness of the taxpayer’s agent

By Mark McLaughlin, April 2023

An underassessment of income tax for discovery assessment extended time limit purposes was not brought about by the taxpayer’s carelessness, but by carelessness on the part of an agent acting on the taxpayer’s behalf.  

Summary 

An underassessment of income tax for discovery assessment extended time limit purposes was not brought about by the taxpayer’s carelessness, but by carelessness on the part of accountants acting on the taxpayer’s behalf. 

Background 

The appellant made several claims for enterprise investment scheme (EIS) relief in respect of the tax years ended 5 April 2015, 2016, and 2017. When making those claims, he did not hold compliance certificate EIS3. Consequently, the appellant made claims for EIS relief he was not entitled to make.  

On 12 March 2021, HM Revenue and Customs (HMRC) raised discovery assessments on

Subscribe to the McLaughlin’s Tax Case Library to get instant access
to the Tax Case Library.
14 day free trial , 90 day money back guarantee
Subscribe

Related or similar articles

Upper Tribunal refused taxpayer’s application to appeal against decisions of the First-tier Tribunal
By Mark McLaughlin, October 2025
Agent’s letters were insufficient to notify HMRC of taxpayer’s chargeability to tax on rental income
By Mark McLaughlin, June 2024
Doctor’s professional subscriptions allowed but other costs and expenses disallowed
By Mark McLaughlin, July 2023
Shares carried a preferential right to dividends
By Mark McLaughlin, April 2021
Discovery assessments were valid despite no new information coming to HMRC’s attention
By Mark McLaughlin, October 2020