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HMRC discovery assessments based on the assumption of continuity upheld

By Mark McLaughlin, November 2021

The taxpayer’s appeal against HMRC assessments for two tax years was allowed based on his evidence, but assessments for other tax years were confirmed, including assessments based on the ‘presumption of continuity.’ 

Following a review of the taxpayer’s affairs, HM Revenue and Customs (HMRC) wrote to the appellant in December 2017 stating it identified that more than £450,000 had been paid into the appellant’s bank account between 18 March 2011 and 1 February 2017. HMRC also identified various sums relating to rent payments and property transactions. HMRC later issued assessments (under TMA 1970, ss 29, 34 and 36) for the tax years 2001/02 to 2016/17. The appellant appealed. 

The appellant and his wife had

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