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.

Incorrect property expenses claims were not careless for discovery assessment purposes

By Mark McLaughlin, July 2019

The appellant’s claims for property expenses in respect of periods when she was still living at the property were mistakenly made but were not careless errors and her appeals against HMRC’s discovery assessments were therefore allowed.  
 
On 12 July 2013, the appellant bought a property to live in. She lived in the property between 12 July 2013 and 16 June 2014. The appellant moved out of the property on or before 16 June 2014. It was rented out between 16 June 2014 and 23 May 2015.  
 
The appellant claimed expenses of £19,772 incurred in preparing the property to rent against rental income in her tax returns for 2013/14 and 2014/15. The property was sold on 16 June 2015. HM Revenue and Customs (HMRC) disallowed the expenses claims by making discovery assessments (under TMA 1970, s 29(4)) for those tax years. The appellant appealed.  
 
HMRC submitted that they

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

Tax Return Enquiry Closure Notices Could Be Given To Deceased’s Personal Representatives
By Mark McLaughlin, August 2018
Penalty For Non-Payment Of Tax Under Accelerated Payment Notice Cancelled
By Mark McLaughlin, September 2017
Parents’ Illness And Death Were Reasonable Excuses For Late Filing Penalty Purposes
By Mark McLaughlin, July 2017
Only Some Unidentified Receipts Treated As Additional Income Or Profits
By Mark McLaughlin, December 2016
HMRC Enquiry Into Share Loss Relief Claim Was Validly Made
By Mark McLaughlin, November 2015