The discovery provisions could not be inferred to cover any shortfall in income tax, and HMRC could not fairly be described as having discovered there was income that had not been assessed, but rather it has been discovered that the taxpayer should have paid the high income child benefit charge. 

The taxpayer’s wife was entitled to and received child benefit. The taxpayer’s adjusted net income for tax purposes exceeded £50,000 and was greater than his wife’s income. The taxpayer did not submit a tax return, and HM Revenue and Customs (HMRC) did not issue a notice to file.  

HMRC considered that the taxpayer was liable to the HICBC for the tax years in question that had not been assessed. The taxpayer was not charged a ‘failure to notify’ penalty, as HMRC