No discovery appropriate

The deceased Mr A had been a Lloyd’s name. It was Revenue practice to open an enquiry into a deceased name’s return for the year prior to death to take into account income or losses from reserve accounts decided after the name’s death.

In Mr A’s case no such enquiry was opened. The result of the error was that once the final income was decided the only option available to HMRC was to issue a discovery assessment.

This the department did. The deceased’s executors appealed.

Shortly before the appeal was to be heard by the First-tier Tribunal HMRC withdrew the assessment.

The executors however pressed on with the hearing claiming the cost of professional fees incurred in relation to the appeal.

The First-tier Tribunal decided to allow the...