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T Ridpath (TC2785)
The taxpayer sold two properties in 2004/05. He appealed against HMRC’s assessment on the basis he had spent £40,000 on improvements.
He was asked by the taxman to provide evidence of expenditure but failed to do so. The assessment was confirmed, and the taxpayer appealed.
The First-tier Tribunal agreed it was “very likely” that the taxpayer had incurred costs on the properties, but it was impossible to divine how much had been spent. The taxpayer could not provide proof of what had been outlaid.
The tribunal had “no idea” why the taxpayer was “so vague about the expenditure” and said it was unfortunate he could not offer any detail. It had no alternative but to dismiss the taxpayer’s appeal.
