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