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Discovery provisions did not apply for the purpose of assessing the high-income child benefit charge

By Mark McLaughlin, February 2023

HMRC could not issue a discovery assessment pursuant to TMA 1970, s 29 where they had learnt that a taxpayer who had neither delivered a tax return in respect of the material year nor been notified of a requirement to do so was liable for the high-income child benefit charge. 

Summary 

HM Revenue and Customs (HMRC) could not issue a discovery assessment under TMA 1970, s 29 where they had learnt that a taxpayer who had neither delivered a tax return for the material year nor been notified of a requirement to do so was liable for the high-income child benefit charge (HICBC). 

Background 

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 HMRC did not issue a notice to file. HMRC considered

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