In D Cliff v HMRC [2019] UKFTT 564 (4 September 2019) the FTT found that a discovery assessment had been valid as the taxpayer’s choice of an inaccurate description of his activities had been deliberate.
Mr Cliff was self-employed as a tax consultant offering his services to racehorse trainers jockeys breeders and others in the equine industry. In addition to his tax consultancy Mr Cliff considered himself to be self employed as a ‘dealer in thoroughbreds’; he bought and sold shares in racehorses and in horse racing partnerships. HMRC had issued discovery assessments on the basis that Mr Cliff had unduly claimed trade loss relief in his return.
HMRC contended that the insufficiency of tax had been brought about deliberately (TMA 1970 s 29(4)) as Mr Cliff had deliberately described himself as a ‘dealer in thoroughbreds’ which was inaccurate. Agreeing with HMRC the FTT found...
