The First-tier Tribunal allowed the appellants’ application to bring appeals against discovery assessments which were between 68 and 33 months late but refused the appellants permission to bring late appeals against penalty notices. 

In 2009/10, the first appellant and a colleague went into business together, purchasing residential properties from builders (who had built but could not sell those properties) and letting them out. However, they were unable to obtain mortgages for properties they wished to purchase, because they were self-employed. Lenders were prepared to lend to employees, so many of the properties were purchased in the names of others, i.e., their spouses, a friend, and his colleague’s father (as they were in employment). The intention was that the benefits and liabilities from those properties were solely those of the first appellant and his colleague. 

Rather than simply treating the individuals as bare trustees