The First-tier Tribunal (FTT) made errors of law and the Upper Tribunal set aside the FTT’s decision for two accounting periods, and remitted the matter back to the FTT to calculate the company’s profits including by applying the presumption of continuity for the earlier accounting period.  

The appellant company traded as a jeweller and bullion dealer. It appealed to the First-tier Tribunal (FTT) against discovery assessments and closure notices made by HM Revenue and Customs (HMRC) for its accounting periods ended 31 January 2007 to 31 January 2014 inclusive. 

Between 2007 and 2012, the price of gold rose substantially. This resulted in a transformation in the company’s business. In its 2006 accounting period, turnover was around £3 million and it focused