No persuasive evidence

The taxpayer was a partner in a property partnership. HMRC opened an enquiry into her 2000/01 return in connection with the capital gain on a disposal of land. The enquiry was eventually closed with HMRC allowing business asset taper relief on the gain.

In 2004 the partnership sold some land which had been rented to tenants on short-term lets for the purpose of growing grass for silage (known as conacre). The taxpayer declared her share of the proceeds in her 2004/05 tax return claiming business asset taper relief.

HMRC enquired into the return of one her fellow partners and queried the business asset taper relief claim. The department subsequently opened an enquiry into the taxpayer’s return and issued a discovery assessment saying that business asset taper relief was not due.

The taxpayer appealed. She accepted that business asset taper...