In T Singh v HMRC (TC01427 – 13 October) HMRC discovered that a trader (S) had failed to declare a capital gain on the disposal of four properties.
S appealed contending that the assessment was excessive because he had only had a beneficial interest as to one-third of the properties and that his two brothers had each also had a beneficial interest.
The First-tier Tribunal reviewed the evidence in detail and allowed the appeal in part finding that one of S’s brothers had a beneficial interest in the properties but that the other brother did not so that S was only taxable on 50% of the gain.
(The Tribunal also found that S had underdeclared his business takings and dismissed an appeal against an amendment to his declared profits.)
Why it matters: When HMRC discovers that the...
