In Johnson and another v HMRC [2022] UKFTT 156 (TC) (4 May 2022) the FTT dismissed the taxpayer’s appeal against HMRC’s discovery assessments in which the loss of tax was brought about carelessly by a person acting on the appellants’ behalf under TMA 1970 s 29(4).
The appellants ran a dental practice through a company and also carried on a property business in their own names. In 2007 they entered into a NatWest vanilla swap. Following a review by the Financial Conduct Authority of such interest rate hedging products the taxpayers were awarded compensation by NatWest. The total amount awarded as set out in a letter to the appellants from NatWest was £86 347.88. Interest was identified at £18 509.24 on which basic rate tax was deducted at source. In each of the appellants’ 2014 tax returns prepared by an agent there was a white space disclosure...
