Genuine mistake

Discovery assessment on executors

The executors of the deceased taxpayer who died on 15 October 2012 appealed against a penalty of £5 060.18 issued for failure to disclose income. This gave rise to an assessment to income tax due from the taxpayer issued on 15 April 2015 for £14 457.67.

The taxpayer’s estate was worth about £1.5m at the time of his death. An inheritance tax return was filed in January 2013 and probate applied for in February 2013. The executors filed the taxpayer’s self-assessment tax return for 2012/13 on 10 August 2013. The self-assessment return covered the period from 6 April 2012 to the date of death but under-declared the income for that period.

On 26 September 2013 an executor wrote to HMRC sending a cheque for £15 332.92 which was then the outstanding tax due and saying that they ‘presumed this is...