In J Scott v HMRC [2023] UKFTT 360 (TC) (4 April 2023) the First-tier Tribunal (FTT) decided that HMRC had raised discovery assessments in time under the extended time limit in the ‘requirement to correct’ offshore non-compliance rules. Those rules were not displaced by the later introduction of the 12-year extended time limit for loss of tax involving an offshore matter.
Mr Scott (S) was the beneficiary of loans from a trust on which no interest was payable and which gave rise to a taxable benefit but which he had not included in his tax returns for 2013/14 or 2014/15. HMRC raised discovery assessments on 9 March 2021.
Under the standard time limits (where careless or deliberate behaviour were not involved) HMRC would have four years from the end of the tax year to raise the assessments (i.e. by 5 April 2018 and 5 April 2019 respectively). The...
