In D Hannah and another v HMRC [2021] UKUT 22 (TCC) (2 February 2021) the Upper Tribunal (UT) agreed with the First-tier Tribunal (FTT) and held that the effective date of a transaction was the date that cash consideration was paid (not the date an annuity was granted) and that the consideration was £765 000 (being the deposit paid on exchange of contracts and a cash amount paid on completion). The UT also held that the discovery assessment was valid and it upheld the penalty for deliberate inaccuracy.
The appellants entered into a contact to buy a residential property for a purchase price of £765 000. They paid a 10% cash deposit. The contract provided that the appellants could satisfy their obligation to pay the purchase price by issuing an annuity to the sellers. The appellants issued an annuity to the sellers and it was redeemed and released before...
